Ravi Modi Family Trust, a promoter entity in Vedant Fashions Ltd, the owner of luxury clothing brand Manyavar, launched an offer for sale (OFS) to slash its shareholding by 9.88 percent.
The floor price for the OFS will be Rs 1,161 per share, which marks a discount 6.84 percent against the last closing price, as per a regulatory filing. This takes the total offer size to around Rs 2,785 crore.
Axis Capital will be acting as the settlement broker for the deal, the exchange filing noted.
The offer will be executed during the trading hours on May 18-19, and will be opened for non-retail investors on the first day and retail investors on the second day, the company said.
The OFS has been launched to comply with the "minimum public shareholding norms", Vedant Fashions said.
As per the rules laid down by the Securities and Exchange Board of India (SEBI), the stake held by promoter and promoter group entities should not cross the 75 percent-mark.
According to the shareholding pattern shared with the BSE, Ravi Modi Family Trust held a 67.07 percent stake in the company as of March 31, 2023. Other promoters cumulatively held 17.80 percent of the shares, thereby taking the total stake of promoters and promoter group to around 84 percent.
Vedant Fashions was, thereby, required to slash its promoters and promoter group's stake by around 9 percent in order to comply with the minimum public shareholding norms.
In the trading session on May 17, the scrip settled at Rs 1,246.85 apiece at the BSE, which was 0.67 percent lower as against the previous day's close.
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