New Delhi: Shares of Sona Koyo Steering Systems Ltd plunged as much as 9% in the morning trade after the company’s offer for sale of its equity shares began on Friday, with a floor price of Rs85.
The company in a regulatory filing said that JTEKT Corp. proposed to sell up to an aggregate of 35,14,879 equity shares representing 1.77% of the total paid up equity share capital of the company on 6 April for non-retail investors, and on 9 April for retail investors.
The floor price of the offer stood at Rs85 per equity share, a 13.39% discount to the closing price of 5 April at Rs98.15 on the BSE.
Following the announcement, Sona Koyo Steering shares opened on a bearish note at Rs93, then lost further ground to touch an early low of Rs89.45, down 8.86% over its previous closing price. On NSE, the stock opened at Rs90.80, then fell to a low of Rs89.55, down 8.85% over its last close.
Till the December quarter, JTEKT held 70.45% stake in the company, while Maruti Suzuki India Ltd had 6.94% stake in the auto component maker.