MUMBAI: Promoter stake sales through the offer for sale (OFS) route in listed Indian companies hit a near four-year high in the first six months of calendar year 2019, driven by foreign strategic investors and debt-related issues. The biggest driver of activity through the OFS route has been foreign strategic investors selling their stakes, both to meet regulatory obligations and also because of strategic business needs. “One of the reasons for the increase in share sales through the OFS route is to meet Sebi’s (Securities and Exchange Board of India) minimum public shareholding norms," said Pranav Haldea, managing director at Prime Database. That happened two months after Standard Life sold a 4.93% stake worth ₹3,500 crore in HDFC Life through the OFS route. There have also been other instances such as promoters of debt-laden Emami Ltd selling 10% stake sale in the group company and Bajaj Resources’ 7% stake sale in Bajaj Consumer Care.

Source: Mint June 30, 2019 18:00 UTC