Shreyas Shipping's attempt to delist from the stock market has faced a significant setback. The proposed delisting offer, spearheaded by Transworld Holdings Ltd., the company's promoter entity, failed to garner the necessary 90% of outstanding shares for a successful delisting.
Shreyas Shipping's attempt to delist from the stock
market has faced a significant setback. The proposed delisting offer, spearheaded
by Transworld Holdings Ltd., the company's promoter entity, failed to garner
the necessary 90% of outstanding shares for a successful delisting.
To meet the minimum acceptance conditions for delisting,
the promoters, in combination with shares acquired through the delisting
process, must equal or exceed 90% of the company's total paid-up equity share
In response to the delisting's initial hurdles,
Transworld Holdings initiated a counteroffer to Shreyas Shipping's public
shareholders, proposing to purchase their shares at Rs 400 each. This
counteroffer came after the reverse book-building process determined a share
price of Rs 890 each.
The counteroffer was open from Wednesday, October 11, to
Tuesday, October 17, with the intention of repurchasing up to 64.9 lakh equity
shares from public shareholders. However, an exchange filing on Tuesday night
disclosed that promoters had only successfully repurchased 36.04 lakh shares
through 2,724 bids in the reverse book-building process and the counter offer.
Despite these efforts, the promoter and promoter group entities could only amass an 87.86% stake in the company, falling short of the mandatory 90% requirement for a successful delisting.
An official exchange filing declared the failure of the
counteroffer due to the inability of the acquirer's post-counter offer
shareholding, combined with other promoter and promoter group members, to
exceed 90% of the total issued equity shares.
This setback took a toll on Shreyas Shipping's stock
price, which ended 1% lower on Tuesday and saw a cumulative decline of over 10%
during the last five trading sessions. In fact, the company's stock has
experienced a decline in 11 out of the last 13 trading sessions, reflecting the
uncertainty surrounding its delisting endeavor.
Shreyas Shipping's management now faces the challenge of
reassessing its strategy and garnering greater shareholder support if it
intends to proceed with the delisting in the future.