Promoters of Muthoot Capital Services Ltd have proposed to sell about 3 lakh shares held by them in the company at a near 20 per cent premium to the current market price.
The sale would take place through the BSE on August 1 commencing from 9.15 a.m. and ending at 3.30 pm the same day, the company said in a communication to the stock exchanges.
At Rs 90 per share (the floor price fixed by the company), the promoters would mop up about Rs 2.78 crore through the sale.
The company said that its promoters — Mr Thomas John Muthoot, Mr Thomas George Muthoot, Mr Thomas Muthoot, Ms Preethi John, Ms Neena George and Ms Remmy Thomas — would collectively sell 3,09,165 shares of Muthoot Capital Services Ltd on August 1.
This would be done through a sale on the separate window provided by the stock exchange for this purpose. Modification/cancellation of orders would be allowed except during the final 60 minutes.
The allocation would be on proportionate basis at a single clearing price. The floor price would be Rs 90 per share and no order below it would be accepted, the notification said.
The floor price is at about 20 per cent premium to the closing price of Rs 76.50 of the share at the BSE on July 27.
The floor price is just about 10 per cent less than the 52-week high of Rs 98 the stock had recorded on July 28, 2011. The company has reserved 25 per cent of the shares on offer for allocation to mutual funds and insurance companies.
The sellers would have the right to either conclude the sale to the extent it was subscribed or cancel the sale in full in the event of aggregate orders (for shares) received was less than the total number of shares offered.
In case of any default in pay-in, an amount of 10 per cent of the bid value would be forfeited as penalty to be credited to the Investor Protection Fund and the balance would be returned to the bidder, the company notification said.
As at the end of June 30, 2012, the promoters held 96,63, 596 shares forming 77.48 per cent of the paid-up capital of Rs 12.47 crore of the company.