DB Corp offer for share sale oversubscribed
The sale of 1.19 crore shares of media firm DB Corp by promoters was oversubscribed today as the offer received bids for 2.11 crore shares, data available on BSE showed.
November 09, 2012 / 08:45 PM IST
The sale of 1.19 crore shares of media firm DB Corp by promoters was oversubscribed today as the offer received bids for 2.11 crore shares, data available on BSE showed. The share sale took place at a separate window of the BSE between 9-15 a.m. and at 3-30 p.m. The promoters of the company are Jyoti Agarwal and Ramesh Chandra Agarwal.
The floor price for the sale is Rs 205 per share, which is a discount of nearly 2 per cent to today's closing price of Rs 208.50. Based on the minimum bidding price, the sale of 1.19 crore shares would fetch atleast over Rs 244 crore to the seller(s).
According to the company filing with BSE, the allocation shall be made on the price priority basis at a multiple clearing price. Of the total sale shares being offered, 25 per cent would be reserved for mutual funds and insurance companies subject to orders being above floor price and according to the allocation methodology. The merchant bankers for the deal are Kotak Securities and Citigroup Global Markets India.
According to data on BSE Web site, the stake of Jyoti Agarwal and Ramesh Chandra Agarwal stood at 5.93 per cent and 17.46 per cent respectively at the end September.The overall stake of the promoter and promoter group stood at 81.51 per cent. DB Corp publishes eight newspapers in four languages across 13 states in India.
The OFS route was introduced by Sebi early this year and allows the companies to sell shares in a simplified process on the stock market platform through a one-day bidding.