Steve Morgan announced last week that he was taking a back seat in the business, moving to non-executive chairman.
He has now reduced his shareholding in the business from around 40% to 33%, remaining the largest shareholder.
Two of his vehicles, Bridgemere Securities Limited and the Steve Morgan Foundation, have sold 25.9 million ordinary Redrow shares at a price of 590 pence per share. This represents 7.0% of Redrow's issued share capital.
Bridgemere Securities now owns 25.5% of Redrow and the Steve Morgan Foundation holds 7.0%.
The share placing was conducted through an accelerated bookbuild by Barclays Bank.