Oracle Financial shares tank as promoter plans offer for sale

Mumbai: Shares of Oracle Financial Services Software (OFSS) today tumbled by over 6 percent after its promoter Oracle announced that it will sell 5.3 percent stake in the company to comply with the minimum public shareholding requirements.

[caption id=“attachment_762775” align=“alignleft” width=“380”] Reuters[/caption]

Oracle will reduce its current 80.3 percent stake in OFSS, a provider of IT products to the financial services industry globally, to 75 per cent in order to meet regulatory requirements adopted in India in June 2010, the company said in a statement today.

According to the regulatory norms, all publicly listed companies on the Indian stock exchange are required to have a minimum public shareholding of 25 per cent by June 2013.

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After making a weak opening, shares of the company further fell by 6.37 per cent to Rs 2,535.55 on the BSE. At NSE, the stock tanked 6.57 per cent to Rs 2,533.65.

“Oracle is committed to continuing its strategic relationship with OFSS and expects to otherwise maintain its position as the majority owner and promoter of OFSS,” it added.

Meanwhile, in the broader market, the BSE benchmark Sensex was trading flat at 19,883.31, down 5.64 points in late morning trade.

PTI