Votorantim to sell Shree Digvijay stake to meet SEBI norm, India

Shree Digvijay Cement on Thursday said Votorantim Cimentos will dilute a 0.27 per cent stake in the company to meet the minimum public shareholding norm.

“The promoter/promoter group intends to sell 0.27 per cent shareholding in the company amounting to 3,82,474 equity shares of the company on the floor of BSE,” the Gujarat-based cement maker said in a Bombay stock exchange filing.

Shares would be offered for sale from 22 July - 2 August 2013, unless sold off earlier, it added. Currently promoters hold a 75.27 per cent stake in Shree Digvijay Cement.

The Securities and Exchange Board of India (SEBI) had mandated all the listed companies to have a minimum public shareholding of 25 per cent. As a result of the open offer made by Votorantim last year, the public shareholding of Shree Digvijay Cement has gone below 25 per cent. Contrary to previous reports, the India-based cement producer has until 4 September 2013 to comply with the SEBI norm.

Votorantim gained control of Shree Digvijay Cement following the asset swap agreement with InterCement over the reorganisation of certain Cimpor operations. Cimpor held a 73.63 per cent in Shree Digvijay Cement.