Promoter Anand Pandit to Sell 2.38 Crore Shares of Sri Lotus at Rs 240

Promoter Anand Kamalnayan Pandit of Sri Lotus Developers and Realty Ltd will offload 2.38 crore shares to meet SEBI's minimum public shareholding rule. The shares are set at Rs 240 each, lower than the current market price of Rs 245.90. The offer will run on November 3 and 4. After the sale, promoters will still hold roughly 79.87% of the company. The move is aimed at bringing public shareholding up to the level required by the regulator. SEBI's rule is meant to protect minority investors by limiting overly concentrated ownership. Failure to reach the threshold could attract penalties or a forced divestment. The discount of about Rs 5.90 per share may make the offer attractive to small investors seeking entry.

Context

SEBI mandates that listed companies maintain a minimum public shareholding, typically around 25%, to ensure adequate market liquidity. Companies that fall below this threshold often sell shares through an offer for sale (OFS) to increase public float. The OFS route allows existing shareholders to sell shares without raising fresh capital for the firm. By pricing the shares slightly below the market, the promoter hopes to attract enough buyers to satisfy the public shareholding norm.