Jaypee Infra to sell shares to meet Sebi guidlines

Jaypee Infratech's parent will sell up to 98.5 million shares on Thursday to raise up to $94 million to meet the market regulator's guidelines on minimum public shareholding.

Jaiprakash Associates, which owns about 83 per cent of Jaypee Infratech, will sell 27.9 million shares to institutional investors with an option to increase it by another 70.6 million, the company said in a statement late on Tuesday.

Jaypee Infratech, which builds roads and homes primarily in Uttar Pradesh, plans to announce the floor price for the share auction after market hours on Wednesday, it said.

The Securities and Exchange Board of India has directed listed companies to ensure that at least 25 per cent of their shares are publicly traded by June-end. Jaypee Infratech shares were down around 4 per cent at Rs 51 at midday. JPMorgan is the banker to the deal.