Shares of Pioneer Distilleries today plunged 5 per cent to hit the lower circuit limit after promoter United Spirits fixed a floor price of Rs 38 per equity share for the stake sale, well below the current market price.
As of September 30, 2012 Vijay Mallya-led United Spirits held 81.99 per cent stake in Pioneer Distilleries.
Pioneer Distilleries had on last Friday, informed the stock exchanges that United Spirits proposed to sell 9,35,982 equity shares representing around 7 per cent of total equity of the company on October 23, 2012.
The scrip fell 4.99 per cent to touch the lower circuit of Rs 45.65 on the BSE. On the NSE, the stock was down 4.98 per cent to Rs 43.90.
The floor price for the sale of shares is Rs 38, which is at a discount of over 20 per cent to the current market price.