Omaxe's share sale under-subscribed; fails to meet SEBI norm

NEW DELHI: Realty firm Omaxe's offer to sell promoters' 2.11 crore shares today attracted bids for only 27.89 per cent of the scrip on block, failing to meet the Sebi's norm of 25 per cent minimum public shareholding.

With the market regulator's deadline to comply with the public shareholding norms ending today, the company would now seek extension for meeting the guidelines.

Omaxe promoters held 89.14 per cent stake in the company as on March 31, 2013. After two rounds of Offer for Sale (OFS), promoters have been able to reduce their stake only by about five per cent.

When contacted, Omaxe Chairman and Managing Director Rohtas Goel said: "We will seek extension of deadline from Sebi to increase public shareholding in the company".

Omaxe's share price fell by 6.09 per cent on the BSE to close at Rs 141.20 a piece.

Promoters' firms Constellation Capital, Kautilya Monetary Services, Naj Builders and S A Finvest offered to sell together a total of 2,11,60,000 shares through OFS at a floor price of Rs 140 per share.

As per the data available with BSE till the closing time of 3.30pm, the company had received bids for only 59,02,454 equity shares, which is 27.89 per cent of the total shares on offer for sale.

This is the second attempt by Omaxe promoters to sell shares through OFS to reduce their stake in the company.

In the first attempt on May 21, Omaxe promoters had offered to sell 50 lakh shares at a floor price of Rs 148 per share. They had received bids for only 33,98,385 shares, which was 67.97 per cent of the offer.