Publication company DB Corp’s stock fell by 4.36 per cent from its previous close on the BSE on Friday even as the company’s issue of offer for sale for about 1.19 crore shares was oversubscribed by almost 1.77 times.
The company received a cumulative bid quantity of 2.11 crore.
The company on Thursday declared a floor price of Rs 205 a share, a discount of 6 per cent to the closing price of Rs 218 on the BSE.
Allocation
The allocation of shares shall be on price-priority basis at a multiple clearing price in accordance with the SEBI circulars.
According to the company filing with the BSE, of the total sale shares being offered, a fourth would be reserved for allocation to mutual funds and insurance companies subject to orders being above floor price and according to the allocation method.
DB Corp publishes newspapers in four languages across 13 states in the country. The merchant bankers for the deal are Kotak Securities and Citigroup Global Markets India.
The move to pare promoter stake comes in the wake of the SEBI public-shareholding norms directing listed private companies to cap promoter holding at 75 per cent by June.
The overall stake of the promoter and the promoter group stood at 81.51 per cent.