US-based IT firm Oracle announced on Wednesday that it will sell 5.3 per cent stake in BSE-listed Oracle Financial Services Software to meet the regulatory requirements in the country.
Oracle will reduce its current 80.3 per cent ownership 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.
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.
"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.
Oracle intends to sell through an offer for sale transaction the minimum portion of its shareholding in OFSS to meet the legal mandate.
The timing and size of the OFS will be subject to market conditions, receipt of any necessary approvals, and other considerations, it said.
Morgan Stanley India Company and Deutsche Equities India have been appointed as brokers for the proposed OFS.
OFSS shares were trading at Rs 2,579.95 apiece, down 4.74 per cent from its previous close on the BSE.
Image: Oracle headquarters | Photograph: Peter Kaminski from San Francisco/Wikimedia Commons