Gillette India promoters will sell shares worth over Rs 570 crore through the offer for sale (OFS) route on Wednesday to meet the SEBI minimum public shareholding norms.
Poddar group, one of its promoters, plans to offload 28.57 lakh shares through the OFS, the floor price for which will be disclosed after today’s market close.
The stock is trading one per cent higher at Rs 1,975 on the BSE in early trade on Tuesday.
The share sale follows a prolonged regulatory battle between Gillette India promoters and SEBI. It was then decided in September that P&G would sell 0.9 per cent stake, while Poddar group would bring down its holding to below 5 per cent.
SEBI had accepted Gillette India proposals to reclassify Poddar group as non-promoter.
SEBI directive
SEBI had also said that Poddar group should not have any special rights in Gillete India through any formal or informal arrangements other than that of normal public shareholder.
Entities belonging to the Poddar group cannot hold any key management personnel position in Gillette India and the other group companies of Procter & Gamble through any formal or informal arrangements, it had added.
“If entities belonging to the Poddar group want to be classified as promoters of GIL again in future, they shall be required to make an open offer and no exemption shall be given in this regard,’’ SEBI had said.
Poddar group had also been directed not to acquire any Gillette India shares for a period of one year from the date of reclassification.
SEBI had earlier imposed certain penalties on the company’s promoters as they did not meet the shareholding rules. As per minimum public shareholding norms, promoters cannot hold more than 75 per cent in any listed company in the private sector.
Gillette India is jointly promoted by Procter and Gamble Co and Poddar Group. Promoters hold 88.76 per cent in Gillette.