Andhra Paper dives over 11% as promoter International Paper Investments offers stake for sale

The Luxembourg-based company will offer 39,77,004 equity shares of the face value of Rs10 each.

Jun 25, 2020 12:06 IST India Infoline News Service

One of the largest integrated paper and pulp manufacturers, Andhra Paper, on Thursday witnessed huge sell-offs on Dalal Street, as the promoter International Paper Investments has offered some portion of its stake for sale from today onwards. The Luxembourg-based company will offer 39,77,004 equity shares of the face value of Rs10 each.

Under this offer for sale (OFS), International Paper will sell about 10% total issued and paid-up share capital in Andhra Paper.

On Thursday (T Day), the OFS will be available for non-retail investors only. Un-allotted non-retail investors who have placed their bids on T Day may indicate their willingness to carry forward their unallotted bids to T+1 Day for allocation to them in the unsubscribed portion of Retail Category.

While the OFS will be available for bids on June 26, 2020, for retail investors only and those non-retail investors who choose to carry forward their bids.

A retail investor is defined as an individual investor who places bids for Sale Shares of the total value of not more than Rs2 lakh aggregated across the exchanges. Andhra Paper says minimum 10% of the Sale Shares shall be reserved for Retail Investors subject to the receipt of valid bids.

Also, the allocation will be on the price priority method basis at multiple clearing prices basis in accordance with the SEBI OFS Circulars.

According to Andhra Paper, no single bidder other than mutual funds registered with the SEBI and insurance companies registered with the IRDAI shall be allocated more than 25% of the Sale Shares being offered in the Sale in compliance with applicable law.

Further, International Paper also has an option to additionally sell up to 28,64,000 equity shares representing 7.2% of the total issued and paid-up equity share capital of the company.    

At around 12.01 pm, the Andra Paper stock was trading at an intraday low of Rs207.60 per piece on Sensex down by 11.34%.

Related Story