The directors of Gammon Infrastructure Projects on Monday approved a proposal through a circular resolution to issue bonus shares in order to comply with the minimum public shareholding requirement.
The promoters will forgo their entitlement to the bonus shares.
The bonus issue is being made in the ratio of one share of the face value of Rs. 2 each for every 34 equity shares held by the members. The promoters at present have 75.53 per cent in the equity capital of the company.
There are hundreds of companies with promoters holding more than 75 per cent in equity capital. Promoters of many companies have started adopting the offer for sale route to reduce their holdings.
Earlier, some foreign and Indian companies came out with buyback offer of public shareholdings and delist the companies concerned from the stock exchanges in order to escape the minimum public shareholding norms.
The delisting offers did not evoke good response as share holders found the offer price not attractive enough to tender the shares.
Recently the promoters of Honeywell Automation and Blue Dart Express exercised the offer for sale route to reduce their holdings in excess of 75 per cent.
Notable among Indian arms which have 75 per cent and above foreign holdings are: BOC India, Atlas Copco, Astra Zeneca, Sharp India, Jet Airways, Oracle Financial, 3M, Novartis India, Thomas Cook, ABB, Whirlpool India and Wapco TVS.
Some of the Indian companies where the promoters hold 75 per cent and above are: Reliance Power, Jet Airways, MOIL, Wipro, Oberoi Realty, Essar Ports, Godrej Industries, Adani Enterporises, Jaypee Infratech and BGR Energy.
Promoters to offload shares in RPower
Three promoter group entities of Reliance Power will be offloading 5.42 per cent stake in Reliance Power through a separate window provided by the stock exchanges on December 19.
The sellers — Reliance Infrastructure Limited, Reliance Innoventures and AAA Project Ventures Private Limited have submitted to the Bombay Stock Exchange a notice of offer for sale of 15.21 crore equity shares of the face value of Rs. 10 each aggregating to approximately 5.42 per cent of the paid up equity share capital of Reliance Power Limited.
At present, the promoters’ stake in Reliance Power is 80.42 per cent.
The shares will be sold through offer for sale (OFS).
The Securities and Exchange Board of India has asked all private sector listed companies to have a minimum public shareholding of 25 per cent by June, 2013.