Oracle Financial Services promoters to cut stake, shares drop 6%

Shares in Oracle Financial Services Software dropped as much as 6 per cent on Wednesday after promoters of the IT solution provider said they will reduce their shareholding in the company by 5.3 per cent to comply with the minimum public shareholding requirements notified by market regulator Securities Exchange Board of India.

The promoters currently hold 80.27 per cent stake in the company. Sebi has fixed a June 2013 for private sector companies to meet the mandatory 25 per cent public holding norm.

Oracle Financial Services shares traded 3 per cent lower at Rs 2,631 as of 09.40 a.m. after dropping to an intraday low of Rs 2,535.55 in early trade. The stock was the top loser on the BSE IT benchmark, which traded 0.6 per cent higher.

Oracle Financial Services, formerly called i-flex Solutions, is a subsidiary of Oracle Corporation.