Sajjan Jindal Family Trust, a promoter entity of JSW Infrastructure, has divested 2% of its stake in the company for ₹1,210 crore through an open market transaction. The move was made to comply with the Securities and Exchange Board of India (SEBI)’s minimum public shareholding norms.
Transaction Details
- The trust sold 4.2 crore shares at an average price of ₹288.21 per share.
- Following the sale, the trust’s stake in JSW Infrastructure declined from 80.72% to 78.72%, while the overall promoter group holdings fell from 85.62% to 83.62%.
- The Singapore government acquired 1.84 crore shares (0.9% stake) for ₹531 crore, further diversifying the company’s investor base.
Compliance with SEBI Regulations
As per SEBI’s guidelines, listed companies must maintain a minimum public shareholding of 25% within a stipulated timeframe after listing. JSW Infrastructure, which debuted on the stock market on October 3, 2023, has been gradually reducing promoter holdings to meet this requirement.
Market Impact
- JSW Infrastructure’s stock closed at ₹288.35 per share, reflecting a 2.93% decline following the transaction.
- The company has witnessed an 18% increase in its share price over the past year, signaling strong investor confidence.
Conclusion
With this strategic stake sale, JSW Infrastructure moves closer to fulfilling SEBI’s public shareholding mandate, while attracting institutional investors like the Singapore government. The company remains a key player in India’s commercial port sector, with a capacity of 177 million tonnes per annum.
