To comply with minimum public shareholding requirements
Novartis India, on Thursday, said its Swiss-promoter Novartis AG intended to reduce its stake in the Indian entity to enable it to meet SEBI (Securities and Exchange Board of India) guidelines on the minimum public shareholding in listed companies.
Novartis AG has informed the company that it intends to reduce its shareholding in the Indian entity through the stock exchange mechanism, Novartis India said in a filing to the BSE.
“This will enable the company to comply with the minimum public shareholding requirement as prescribed under the Securities Contract (Regulation) Rules and Clause 40A of the Listing Agreement,” it added.
As per the shareholding pattern of the company, as on September 30, 2012, Novartis AG had 76.42% stake in Novartis India. SEBI has made mandatory for listed companies to achieve a minimum of 25 per cent public shareholding by June.
Shares up 4 %
Shares of Novartis India on Thursday closed higher by 3.75 per cent, adding Rs. 68 crore to its market capitalisation, after the disclosure.
Shares of the drug major, which had surged as much as 10.71 per cent during the day, finally ended the day at Rs.598.80, higher by 3.75 per cent from its previous closing on the BSE. — PTI