Gillette India promoters to sell shares via OFS on November 13

FMCG major Gillette India's promoters will sell shares, worth over Rs 550 crore, through Offer for Sale route on Wednesday in a bid to comply with market regulator Sebi's minimum public shareholding norms.

Gillette India's promoter would sell 28,57,744 equity shares of face value of Rs 10 each aggregating to about 8.77 per cent of the total paid up equity share capital of the company through the OFS on November 13, the company today said in a regulatory filing to the stock exchanges.

The floor price would be decided after tomorrow market close. As per today's closing price of Rs 1,955.45, these shares would be worth about Rs 559 crore.

The upcoming share sale follows a prolonged regulatory battle between Gillette India's promoters and the Securities and Exchange Board of India (Sebi).

Ahead of the share-sale on November 13, BSE would conduct a mock session tomorrow for the OFS.

According to the company, SK Poddar, Akshay Poddar, Shradha Agarwala, Jyotsna Poddar, Saroj Kumar Poddar, Adventz Investments and Holdings, Adventz Finance, Adventz Securities Enterprises, Planon Group, Globalware Trading & Holdings, Procter & Gamble India Holdings B V, form part of the promoter and promoter group of Gillette India.

Earlier in September, Gillette India had announced a fresh plan to meet Sebi's minimum public holding norms under which its US-based promoter P&G and Poddar Group would sell part of their respective holdings.

As per the plan, P&G would sell 0.9 per cent stake, worth about Rs 66 crore at current price, Poddar Group would also bring down their holding to below 5 per cent through part sale of equity.

Further, S K Poddar and A Poddar will step down from the Gillette India board and on approval of the resolution passed by Gillette India shareholders in a general meeting or a postal ballot. The remaining shareholding of the Poddar Group shall be considered as public shareholding.

Sebi had earlier imposed certain penalties on the company's promoters for failing to comply the shareholding rules. As per minimum public shareholding norms, promoters cannot hold more than 75 per cent in any listed company in the private sector.

Gillette India is jointly promoted by The Procter and Gamble Co and Poddar Group. Promoters hold 88.76 per cent in Gillette.

In 2012, the company had proposed a three-stage plan to bring down the promoter holding to 75 per cent, which was turned down by Sebi as it involved re-classification of a top company executive as non-promoter entity.