In a bid to meet the market regulator’s guidelines on minimum public shareholding, Jaypee Infratech’s parent will sell up to 98.5 million shares on January 24, 2013 to raise up to $94 million. Jaiprakash Associates, which owns about 83% of Jaypee Infratech, is all set to sell 27.9 million shares to institutional investors with an option to increase it by another 70.6 million.
Jaypee Infratech, which builds roads and homes primarily in the north Indian state of Uttar Pradesh, is planning to announce the floor price for the share auction after market hours on January 23, 2013.
The Securities and Exchange Board of India has directed listed companies to ensure that at least 25% of their shares are publicly traded by June end.
