Nirma To Delist From BSE & NSEBy Naiwrita Sinha, Gaea News Network
Monday, October 11, 2010
MUMBAI, INDIA (Gaea Times.com) Nirma Ltd. has announced its intentions of delisting its shares from the stock exchanges. The announcement was made today before the trading hours. The announcement has caused a rise in the shares of the company, it rose to a yearly high of 18 percent on the Bombay Stock Exchange or BSE. The share hit a high of Rs 264.85 in the morning trade. There was an increased amount of movement on the counter with the trading of 4.85 lakh of shares as against the average daily volume of 1.07 lakh shares in the past one quarter. The company will be acquiring the entire non-promoter holding in the firm. A similar trend was noticed on NSE where the share rose by 16.17 percent to trade at Rs 260 in the opening hours.
The proposal to delist the company from the stock exchanges was made by Chairman Karsanbhai Patel and other promoters and has been approved by the board of directors. The company’s promoters Karsanbhai Patel, Shantaben Patel and Kulgam Holdings Pvt Ltd, will acquire the equity shares held by public shareholders in accordance with the Security and Exchange Board of India (SEBI) delisting norms. The promoters, currently holding around 77.17 percent of the shares will buy out 3.63 crore shares at a price of Rs 235 per share. Nirma has a face value of Rs.5 per share.
The Rs 235 per share is an attractive offer for the shareholders of Nirma as it reflects a 19 percent premium to the price determined as the average of the weekly high and low of the closing prices. The company was listed on the Stock Exchanges in 1994, ten years after its incorporation in 1984.