Crompton Greaves Consumer Electricals Ltd has approved the sale of a six percent stake in its subsidiary Butterfly Gandhimathi Appliances Ltd via an offer for sale (OFS), a regulatory filing said on September 19.
The company's executive committee of directors, which held a meeting earlier in the day, gave its nod for the sale of around 10.72 lakh equity shares in Butterfly Gandhimathi, at a face value of Rs 10 each.
The OFS will be executed on September 20-21 with a floor price of Rs 1,370 per share, Crompton Greaves informed the stock exchanges."The executive committee of directors of the company at its meeting held today, approved the sale of up to 10,72,775 equity shares of face value of
Rs 10 each of Butterfly Gandhimathi Appliances Limited, a material subsidiary of the company, representing up to 6 percent of its total issued and paid-up equity share capital through an offer for sale through stock exchange mechanism," it said.
The OFS is aimed at complying towards the "minimum public shareholding requirements", in accordance to the applicable laws, the company added.
On September 20, the sale window will open for non-retail investors only, the filing noted, adding that September 21 is assigned for "retail investors and non-retail investors who choose to carry forward their un-allotted bids".The shares of Butterfly Gandhimati on September 19 closed at Rs 1,506.20 apiece at the BSE, which was 0.56 percent lower as compared to the previous day's close. At the NSE, the share valued at Rs 1,495.85 at the NSE, marking a 1.27 percent drop as compared to the last closing price.