Ingersoll-Rand promoter proposes to offload stake via OFS

Ingersoll-Rand promoter proposes to offload stake via OFS

Shares of Ingersoll-Rand (India) slumped 7% in early trade on November 24 following the promoters decision to sell their stake in the company.
Ingersoll-Rand INC, a promoter of the company, proposes to sell up to 14,25,798 equity shares (representing up to 4.52% of the total issued and paid-up equity share capital of the company) on November 24, 2020 (for non retail investors only) and on November 25, 2020 (for Retail Investors and for non-Retail Investors).
The floor price for the sale shall be Rs 578.60 per equity share and 12% discount on the cut-off price is being offered to retail investors.

The OFS opened on Tuesday (24 November 2020) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Wednesday (25 November 2020).
A total of 10% of the offer size, aggregating to over 1.42 lakh shares, has been reserved for retail investors. The company will offer 12% discount on the cut-off price to retail investors.
Post stake sale, the promoter stake will come down to 75%, in-line with SEBI guidelines on minimum public shareholding pattern. The stake sale will fetch the promoters Rs 82.5 crore.

Ingersoll-Rand is primarily engaged in the business of manufacturing and sale of industrial air compressors of various capacities and related services, and its complete machines and spare parts.
The company’s net profit declined by 19.5% to Rs 18.30 crore on a 13.5% fall in net sales to Rs 148.19 crore in Q2 FY21 over Q2 FY20.

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