Denso India stock on Monday hit the upper circuit level of 5 per cent at Rs 55.50 on the Bombay Stock Exchange, after the company said its board has approved the delisting proposal of its parent.
The stock’s 52-week high and low are Rs 56.80 and Rs 36.50, respectively.
Denso India said that it had received a letter from Denso Corporation, Japan — one of the company’s promoters — informing about its decision to voluntarily delist its equity shares from the stock exchanges.
The promoters have proposed to acquire up to 74 lakh equity shares, representing 26.54 per cent stake held by public shareholders in the company, Denso India said in a statement.
Denso Corporation currently holds 1.33 crore shares representing 47.93 per cent of the paid-up equity share capital of the company. Other promoters include Maruti Suzuki India, Sumitomo Corporation and Asmo Company Ltd. They hold 27.54 per cent stake in the company.
“Given that the shares of the company are frequently traded on the BSE and infrequently traded on the other stock exchanges, the floor price in terms of the delisting regulations will be determined in terms of Regulation 15(2) of the Delisting Regulations and the small be notified in due course,’’ it said in a statement.
The company’s equity shares are currently listed on the Bombay Stock Exchange, Madras Stock Exchange and Delhi Stock Exchange.
However, the company said that its equity shares are permitted to be traded by the National Stock Exchange.