The institutional placement programme (IPP) of Oberoi Realty, the second-largest realtor in the country according to market capitalisation, through an offer for sale by the promoters, was subscribed 2x. The share sale by the promoters fetched around Rs 190 crore ($30 million) for their 3.49 per cent stake.
The company’s CMD and promoter Vikas Oberoi had offered to sell 11.4 million shares with a floor price of Rs 158 per share. The issue saw bids for 21.6 million shares, bulk of it on the BSE with an indicative price of Rs 167.
The share sale was to meet the listing norms which mandate a minimum public holding of 25 per cent for public listed firms and thereby a maximum of 75 per cent by the promoters. Promoters held 78.49 per cent of the company.
Oberoi Realty scrip rose 4.7 per cent to close at Rs 174.7 a share on the BSE in a flat Mumbai market on Thursday.
Earlier, VCCircle had reported the firm has hired bankers for the IPP and the issue was expected this week itself.
The realty company had launched its initial public offering in October 2010, the last major property developer to go public. Its issue was over-subscribed more than 12 times back then. However, it did not escape the poor investment sentiment related to the sector thereafter and has lost around one-third of its value since listing at Rs 260 per share.
Total institutional holding in the firm has moved up to around 14 per cent after the IPP.
(Edited by Joby Puthuparampil Johnson)