EID Parry India, promoter of Coromandel International is looking to sell up to 2% stake or 58.5 lakh shares of the fertiliser and chemicals company through open market on Wednesday to raise upto Rs 483 crore, according to a term sheet issued by Kotak Securities.
The sale price has been fixed at Rs 800 – 825 per share, a discount of 3.2-6.1% to Tuesday’s closing price of Rs 851.95. As of September 30, 2020, EID Parry India held 58.42% stake in the company.
Shares on sale are locked for 90 days and allocation of shares to foreign portfolio investors is subject to the headroom available as per the investment limits under the applicable laws, according to the term sheet.
Earlier in June, EID Parry sold 2% stake in Coromandel International in the open market at Rs 629.191 a share to raise about Rs 368 crore. The proceeds of sale was used to bring down the debt of the company. EID Parry has reduced its debt from Rs 5,125 crore on March 31, 2019 to Rs 1,334 crore as on September 30, 2020.
Shares of EID-Parry gained 1.37% to close on Rs 333.65 on Tuesday.
Source: Economic Times