Andhra Paper slips 11%

Andhra Paper today opened over 8% lower at Rs.215 and went down to its intraday low at Rs.208.85, slipping almost 11%. It is currently trading at Rs.211 levels.

The market is pretty unhappy with the company’s OFS price. The company yesterday evening announced that International Paper Investments, the promoter of the company plans to sell 10% of its equity through an offer for sale (OFS). The promoter also retains the option of selling additional 7.2% stake.

The OFS floor price has been set at Rs.186/share and this is at a huge discount of 20% to its yesterday’s close of Rs.234.14.

If the promoter decided to go for the oversubscription offer, it can bring down its stake to as low at 2.8% from the current 20%.

The OFS has already opened for non-retail investors and for retail, it will open tomorrow.