Promoters Set to Divest Nearly 6% Stake in Diamond Power via OFS
In a key market development, promoters of Diamond Power Infrastructure Ltd — namely Monarch Infraparks Pvt Ltd and GSEC Ltd — have announced plans to offload up to 5.98% stake in the company through an Offer for Sale (OFS). The OFS opens a fresh window for institutional and retail investors to participate in the company at a discount to market price.
The floor price for the OFS has been set at Rs 95 per share, which reflects an 11% discount compared to the prevailing current market price (CMP) of the stock. The stake sale is part of the broader strategy by the promoters to pare holdings and comply with minimum public shareholding norms.
Stake Details: Quantum and Structure
The proposed OFS involves promoters offloading up to 1.68 crore shares, translating to 5.98% of the company’s total equity. The OFS will be conducted over two days, with the first day reserved for non-retail institutional investors, and the second day open for retail investors.
Key highlights:
Promoter Entities: Monarch Infraparks Pvt Ltd and GSEC Ltd
Total Offer Size: Up to 1.68 crore shares (~5.98% equity)
Floor Price: Rs 95 per share
Discount to CMP: ~11%
The OFS mechanism allows promoters to raise capital in a transparent manner while ensuring price discovery through the bidding process on the stock exchanges.
About Diamond Power Infrastructure Ltd
Diamond Power is a leading integrated player in India’s power transmission and distribution sector, manufacturing a wide range of products including power cables, conductors, transformers, and related components. With a strong manufacturing footprint and diverse clientele comprising government utilities and infrastructure EPCs, the company plays a vital role in supporting India’s growing energy infrastructure needs.
The company had undergone significant restructuring in the past and has recently seen renewed investor interest amid improved financial metrics and strong order book visibility.
Market Implication of 11% Discount
The 11% discount on the OFS floor price signals an effort to ensure full subscription and offer better value to prospective buyers. While such discounts are common in promoter sales, they can result in short-term stock price volatility due to supply-demand dynamics and profit-booking by arbitrageurs.
However, the fact that promoters are still retaining a majority stake post-OFS indicates continued confidence in the company’s long-term prospects. Market participants will closely watch subscription trends and institutional demand for cues on sentiment.
Final Thoughts
The planned stake sale by Monarch Infraparks and GSEC through an OFS is a significant corporate move for Diamond Power. It opens up shareholder diversification and could enhance liquidity in the stock. While the 11% discount offers a pricing edge to investors, the real takeaway is the company’s positioning in a sector where demand remains structurally strong.
This development comes at a time when India's infrastructure and power capex are seeing multi-year highs, offering a conducive environment for companies like Diamond Power to grow.
Written by Indira Securities SEBI Registered with 30 plus years of experience in Stock Market!!!