Vedant Fashions shares tank 4% as two-day OFS kicks off. Key details

Shares of Manyavar brand owner Vedant Fashions tanked 4 per cent in Thursday's trade after an offer for sale (OFS) of up to 9.88 per cent stake by a promoter group entity kicked off. The objective of the issue is to achieve a minimum public shareholding norms.  

Ravi Modi Family Trust, a part of promoter group, said it would sell 7 per cent stake in the company through OFS, with an option to sell an additional 2.88 per cent stake in the event of oversubscription. The floor price for the issue at Rs 1,161 per share was at a 6.88 per cent discount to Vedant Fashions' closing price of Rs 1,246.85 on Wednesday.

Tracking the development, the stock fell 4.14 per cent to hit a low of Rs 1,195.15 on BSE.

Ravi Modi Family Trust, acting through its trustee, Modi Fiduciary Services, is one of the promoters of Vedant Fashions. It has proposed to sell up to 1,69,94,600 shares on May 18 for non-retail investors only and on May 19 for retail investors and for non-retail investors who choose to carry forward their unallotted bids.

There is an option to additionally sell 69,87,824 shares, representing 2.88 per cent of the total issued and paid up equity share capital of the company.

If the oversubscription is exercised, it will represent 9.88 per cent of the total issued and paid up share capital of the company, i.e. 2,39,82,424 shares.

"The offer is being undertaken by the sellers, inter-alia, for achieving the minimum public shareholding of the company as prescribed under Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, and Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, and is one of the permissible methods prescribed by Sebi," it said.

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