Endurance Technologies is in the limelight today for all the wrong reasons. The stock price slumped almost 10% to Rs.1137.60. Volumes are up over 6 times.
The market is perturbed that the promoter is selling stake that too at a discount!
The company’s promoter, Anurag Jain plans to sell 63.6 lakh shares or 4.52% stake with greenshoe option of additional 41.9 lakh equity shares or 2.98% to non-retail investors on March 6 and retail investors on March 7.
To make matters worse, the floor price has been set at a discount to yesterdays close at Rs.1100, which is 12.6% lower than previous close.
The move is aimed at reducing promoters’ stake to meet SEBI’s minimum public shareholding norm of 75% as against which promoter holding is currently at 82.50%.
Though the stake sale is not happening for meeting personal needs of the promoters, the stake sale at a discount has not gone down too well.