Jaypee Infratech's parent will sell up to 98.5 million shares on Thursday to raise up to $94 million to meet the market regulator's guidelines on minimum public shareholding.

Jaiprakash Associates, which owns about 83 percent of Jaypee Infratech, will sell 27.9 million shares to institutional investors with an option to increase it by another 70.6 million, the company said in a statement late on Tuesday.

Jaypee Infratech, which builds roads and homes primarily in the north Indian state of Uttar Pradesh, plans to announce the floor price for the share auction after market hours on Wednesday, it said.

The Securities and Exchange Board of India has directed listed companies to ensure that at least 25 percent of their shares are publicly traded by June end.

Jaypee Infratech shares were down around 4 percent at 51 rupees at midday.

JPMorgan is the banker to the deal.