JSW Infrastructure Shares Decline More Than 3 Per Cent After Block Deal

JSW Infrastructure Share Price: JSW Infrastructure shares declined over 3 per cent to trade at an intraday low of Rs 288.1 apiece on the NSE. The stock fell after 42.4 million shares of JSW Infrastructure changed hands in a block deal on May 16.

As per a report by Bloomberg the promoter group entity of the Company pared its stake in a block deal worth around Rs 1,200 crore. The Company sold 2 per cent stake in the Company or 42 million shares.

JSW Infrastructure Block Deal

As per the report the offer floor price for the block deal was fixed at Rs 288 per share at a discount of 3 per cent to the closing price on May 15 of Rs 297.05 per share. The report also stated that Jefferies Group is the sole book-runner for the block deal. The shares sold in the block deal have a lockup of 60 days from closing date for the seller and a lockup of 30 days for any unsold part of proposed sale.

Earlier on May 9, JSW Infra informed the exchange via a regulatory filing that the promoters of the company plan to sell shares of the Company in the open market for meeting meeting minimum public shareholding. As per NSE data the promoter group of the Company JSW Infrastructure group (Sajjan Jindal Family Trust) holds 85.62 per cent stake.

“In accordance with the requirement of Rule 19(2)(b) and 19(A) of the Securities Contracts (Regulation) Rules, 1957 and Regulation 38 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with para 3(7)(i) of the SEBI Circular No. ....CFD/PoD2/P/CIR/2023/18…..in connection with manner of achieving minimum public shareholding, the Seller intends to sell certain equity shares of the Company in the open market (“Proposed Sale”), subject to any other permissible methods of meeting minimum public shareholding in terms of the applicable law,” the Company said in the filing.

As per Sebi norms, listed companies have to mandatorily maintain a minimum public shareholding of 25 per cent after listing. Newly listed firms are given a time of three years to comply with these norms—notably the Company listed on the exchanges on October 3, 2023.