North-based real estate developer Omaxe Ltd is planning to launch an offer for sale (OFS) shortly to comply with SEBI’s minimum public shareholding norms. The promoters of Omaxe will have to dilute nearly 15 per cent of their stake via the OFS route.
The company has hired Ernst & Young and Antique Capital Markets as bankers for the share sale, according to a statement issued by the firm on Monday.
Omaxe is promoted by Rohtas Goel and his family, through various group companies. Currently, the promoters own 89.14 per cent stake in the company, of which around two-thirds are pledged with financial institutions. At the current market price, the promoters will require to sell shares worth around Rs 400 crore.
As per SEBI’s listing guidelines, public-listed firms need to maintain at least 25 per cent public holding and have to achieve that by June 2013.
However, analysts tracking the realty sector are not too enthusiastic about the proposed share sale. An analyst from a domestic brokerage said, “We think it will be difficult for Omaxe to sell its lot as its performance over the past few years has not been satisfactory. Most of the analysts do not cover the stock any more. DLF is also coming up with its share sale and even that is expected to come at a discounted rate.”
Omaxe’s shares last traded at Rs 157.7 a unit, down 0.13 per cent on the BSE in a strong Mumbai market on Monday. For the year ending March 2013, the FIIs have reduced their exposure in the company to 1.42 per cent, compared to 1.50 per cent at the end of the December 2012 quarter.
(Edited by Sanghamitra Mandal)