UK-based pharmaceutical company, Dashtag on Saturday proposed to acquire Fulford (India) shares from public shareholders and thereafter delist the company via the reverse book building process from stock exchanges, the company said in a stock exchange filing.
Dashtag aims to acquire 9.76 lakh shares – representing 25.05% stake – and may to have to shell out Rs 166.53 crore at Monday’s share price. The promoter entity presented its proposed schedule in its filing on Saturday, whereby the bid opening date is listed as June 3 and closing date as June 9. The company will dispatch offer letters to shareholders on Jun 2 (Tuesday) and the last date to raise the bid price is Jun 8, the company said.
Shares of Fulford jumped as much as 13.2% on Monday, before closing with net gains of 12.26% or Rs 186.25 at Rs 1,705.25. More than 6,291 shares were traded on BSE as against an average 1,518 shares traded in the last five sessions and 3,809 shares in the last 30 sessions. The stock opened at Rs 1,600 and spiked to Rs 1,717, exchange data showed.
This is the fifth delisting offer under the revised rules. So far, Srinivasa Hatcheries, Gujarat Metal Cast, Panasonic Appliances have successfully conducted their reverse book building (RBB), while the Anup Engineering’s RBB is currently underway and will end on Tuesday.
The company may be able to delist the company if it is able to ensure that it contacted all shareholders about the offer in the manner prescribed by Sebi.
Panasonic Appliances successfully delisted in shares from the Indian stock exchanges in March after acquiring 16.14 lakh shares or roughly 16.4% stake from public shareholders.
Sebi diluted some provisions to its amendments in January and the condition of mandatory participation of 25% of the public shareholders holding shares in demat mode would not be applicable. Under the earlier rule, the company would require participation from at least 25% of the 3,788 shareholders holding 9.76 lakh shares.
Dashtag holds 74.95% stake in Fulford as on quarter ending March 2015, exchange data showed. The board approved the delisting offer on Apr 25. This is the second attempt by Fulford to delist shares from the bourses. In December, the promoter company shelved its plans to acquire shares citing an abnormal spurt in share prices, leading a price decline of more than 20% in three months.
“In view of the current share price of the Fulford (India) being substantially higher than the indicative price of Rs 1,150 per share for the delisting, Dashtag has decided not to make the public announcement of the delisting offer at this time,” Dashtag stated in a filing on December 1 . Morgan Stanley India is the sole manager to the delisting offer.