Shares in Blue Dart Express plunged over 10 per cent on news that the logistic company's parent will reduce its stake to meet the free float guidelines of market regulator Securities and Exchange Board of India (Sebi).
DHL Express, which holds 81 per cent stake in Blue Dart Express, will have to bring its shareholding down to 75 per cent to meet the minimum public shareholding requirements of at least 25 per cent.
The move to trim stake has probably taken investors by surprise. Over the past year, shares in listed Indian businesses of MNC firms have been gaining on hopes that the promoters would de-list their firms to resist diluting the promoter holdings to below 75 per cent, for which Sebi has set a deadline of June 2013.
Analysts told NDTV Profit that there has been an uptrend in such stocks because of the belief that foreign promoters would want control of their Indian businesses to ensure complete independence in decision-making. However, Blue Dart's decision goes against this trend and hence the sharp sell-off in the stock.
At 1 p.m., Blue Dart Express traded 11 per cent lower at Rs 1,710.95 on the BSE.
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