Novartis India has said it's Swiss-promoter Novartis AG intends to reduce its stake in the Indian entity to enable it to meet the Securities and Exchange Board of India (Sebi) guidelines on the minimum public shareholding in the listed companies.
Market regulator Sebi has made it mandatory for the listed companies to achieve a minimum of 25 per cent public shareholding by June this year.
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According to the shareholding pattern of the company, as on September 30, 2012 Novartis AG had 76.42 stake in Novartis India.
"Novartis AG has informed the company that it intends to reduce its shareholding in it through the stock exchange mechanism," Novartis India said in a filing to the Bombay Stock Exchange (BSE). "This will enable the company to comply with the minimum public shareholding requirement as prescribed under Securities Contract (Regulation) Rules and Clause 40A of the Listing Agreement."
Shares of Novartis India were trading at Rs 593.50 on BSE, up 2.83 per cent from its previous close.
with inputs from PTI