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Companies rush to meet public holding norms

Statesman News Service |

press trust of india
MUMBAI, 2 JUNE: As the Sebi deadline ends tomorrow for listed private sector entities to achieve minimum 25 per cent public shareholding, promoters of at least nine firms, including Tata Comm and Essar Ports, would offer to sell shares worth a cumulative amount of over Rs 700 crore to meet the norms.
The other companies slated for sale of promoter shares tomorrow to meet the guidelines include BGR Energy Systems, Omaxe, Kartik Investment Trust, Lords Chloro Alkali Ltd, Marathwada Refractories, Rama Phosphates and Balashri Commercial Ltd. Together, these nine companies are expected to offer to sell shares worth an estimated amount of more than Rs 700 crore tomorrow. Besides, some more companies are expected to announce their offers to meet the deadline.
While the offers for sale (OFS) of Tata Communications and BGR Energy would be conducted on the platforms of both the BSE and NSE, the remaining offers would be held on either of the two bourses.
As per the Sebi’s minimum public holding norms, all listed entities from the private sector are required to achieve 25 per cent or more public holding by 3 June 2013. For the public sector entities, the minimum public holding of 10 per cent is required to be achieved by 8 August 2013.
The norms were announced three years ago in 2010, but most of the non-compliant companies began working towards meeting these guidelines in the recent months only.