One of the promoters of Vedant Fashions, Ravi Modi Family Trust, is planning to sell a 9.88% stake in the company via an offer for sale (OFS).

The trust will sell 1,69,94,600 equity shares or 7% of its entire issued and paid-up equity share capital. They can also sell an additional 69,87,824 equity shares, representing 2.88% of the company.

Vedant Fashions disclosed in an exchange filing that Axis Capital will serve as the deal’s settlement broker.

According to sources, the block offer will take place during trading hours on May 18 and 19 at a floor price of Rs 1,161 per share. This represents a 6.34% decrease from the previous closing price. According to the filing, the offer would be offered to non-retail investors on the first day and retail investors on the second.

About 10% of the offer is reserved for allocation to retail investors and a minimum of 25% of the offer shares will be reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price.

In the case that mutual funds and insurance firms under-subscribe, the unsubscribed portion will be made available to other non-retail bidders.

While placing their bids on May 18, non-retail investors may indicate their willingness to carry forward their unallotted bids to T+1 day for allocation to them, in the unsubscribed portion of the retail category.

Any unsubscribed portion of the non-retail category after allotment will be eligible for allocation to the retail category. Non-retail investors will be allocated at a price equal to or higher than the cut-off price based on bids.

Vedant Fashions shares closed 0.55% lower on the NSE on Thursday, at Rs 1,239.40.