Ricoh India scrip rises 12% on delisting offer

May 07 2014, 14:42 IST
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The Ricoh India stock rose more than 10% on BSE on Tuesday after its promoter announced an offer to delist the company The Ricoh India stock rose more than 10% on BSE on Tuesday after its promoter announced an offer to delist the company
SummaryThe Ricoh India stock rose more than 10% on BSE on Tuesday after its promoter announced an offer to delist the company

The Ricoh India stock rose more than 10% on BSE on Tuesday after its promoter announced an offer to delist the company. Ricoh India’s promoter, Ricoh Asia Pacific, made an announcement of acquiring shares representing 26.4% of the equity capital of the company from public shareholders to delist the company from BSE. In November last year, the board of directors had approved the delisting proposal received from Ricoh Asia Pacific.

The scrip touched a high of R148.95 intraday before ending 12.5% higher at R144.95 on BSE. The scrip has gone up over 147% since November last year.

The floor price for delisting has been fixed at R58.01 a share, while the indicative price is at R120 a share, representing a 106.85% premium on the floor price. “The pricing for the delisting is in line with the industry average,” said a merchant banker, handling the Ricoh India delisting.

At the end of March, the promoters held 73.60% stake in Ricoh India, domestic institutional investors held 0.02%, while Non-Institutions held 26.38%.

Ricoh India had earlier tried delisting in November 2012 which failed after the company could not acquire the required number of shares.

Another MNC, AstraZeneca Pharma India, had recently announced board decision to seek shareholders' nod for voluntary delisting of equity shares on various bourses.

While several small firms have managed delisting in past two years, the bigger firms were struggling. Most of the bigger MNCs that wanted to delist their shares in 2012, for instance, did a volte face and opted for stake sales. This included firms such as Oracle Financial Services Software and Novartis India.

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