Pioneer Distilleries under-subscribed

The offer to sell 9.35L shares of Pioneer Distilleries by promoter United Spirits was under-subscribed.

The offer to sell 9.35 lakh shares of Pioneer Distilleries by its promoter United Spirits was under-subscribed today.

As on September 30,Vijay Mallya-led United Spirits held 81.99 per cent stake in Pioneer Distilleries.

The offer for sale of 9.35 lakh shares,or about 7 per cent of the company,received bids for 55,100 shares,as per the data available on the BSE.

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The floor price for the sale is Rs 38,which is at a discount of over 20 per cent to the today’s closing market price of Rs 45.65.

Based on the minimum bidding price,the sale of 9.35 lakh shares would fetch over Rs 3.55 crore to the seller.

Shares of Pioneer Distilleries plunged 5 per cent to hit the lower circuit limit after promoter United Spirits fixed a floor price of Rs 38 per equity share for the stake sale,well below the closing market price.

Pioneer Distilleries had on last Friday,informed the stock exchanges that United Spirits proposed to sell 9,35,982 equity shares representing around 7 per cent of total equity of the company on October 23,2012.

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