The biggest shareholder in Charleston-based Benefitfocus Inc. has updated its plan to cut its ownership stake in the software developer.

Goldman Sachs & Co. is proposing to sell up to 2.875 million shares it owns in the Daniel Island company, according to a statement filed Tuesday with the Securities and Exchange Commission.

That would reduce the bank's holdings to about 33 percent from almost 45 percent.

The value of stock to be sold was about $113 million based on the trading price Wednesday afternoon.

Benefitfocus will not receive any of the proceeds.

The timing of the sale was not disclosed in the filing.

Goldman Sachs has been a major stockholder in Benefitfocus since January 2007, when it invested $106 million in the business.

The fast-growing technology firm makes software tools that enable employees to compare, enroll in and manage their workplace benefits. The company's customers include large businesses and health insurance carriers.

At one point, Goldman Sachs owned about two-thirds of Benefitfocus. It sold more than 2.6 million shares for about $70 million when it took the company public in September.

According to its most recent ownership filing, the New York-based investment bank controls about 11.38 million shares valued at $448 million based on the trading price early Wednesday afternoon. That same stake was worth $535 million July 1, when Goldman Sachs first announced plans to reduce its ownership further.

Shares of Benefitfocus tumbled 7 percent Tuesday, making it one of the biggest decliners on the Nasdaq for the session. They were down less than 1 percent to about $39.39 early Wednesday afternoon.