Chemplast Sanmar has also joined the delisting bandwagon of Alfa Laval India, UTV Software Solutions, Carol Info Services and Patni Computer.
According to a statement to the BSE, Sanmar Holdings Ltd, promoter of the company has expressed its intentions voluntarily to delist shares the from the exchanges “as the company is going through one of the most difficult times in its history.” The board today approved the proposal.
The stock jumped 4.83 per cent to Rs 5.21 on the BSE, with 1.12 lakh shares changing hands against two-week average of 22,000 shares.
“The operations of the company have been severely affected by the wide fluctuations in petrochemicals prices, compounded by delay in accruing revenues from its large projects due to delays in their commissioning,” the company statement added.
The company, which has been incurring losses from the financial year 2008-09 and has not declared dividend since 2003-04, “needs to be reorganised and raise equity funds to correct the situation.”
The stock is listed on the BSE, the NSE and Madras Stock Exchange.
“Under these circumstances, the promoters believe that the delisting option is in the best interests of the public shareholders as it comes with an opportunity to exit at a fair price,” the statement added.
While domestic institutions hold 6.03 per cent stake in the company, retail investors have an exposure of about 7 per cent and high net worth individuals 2.38 per cent.
Among the institutions, LIC holds 5.08 per cent and Enam Financial 4.99 per cent stake in the company.
Meanwhile, the delisting offer of Alfa Laval India Ltd opens on February 15 and closes on 22. The company has fixed the floor price for each share at Rs 2,045 and an indicative price of Rs 2,850. It was barely three months back that Swedish promoter of Alfa Laval had indicated a floor price of Rs 2,045 as the acquisition price.
The delisting offers UTV Software Communications from Walt Disney and Carol Info Services from Wockhardt closed last week and both received a good response from retail investors.