Transgene Biotek investors cry foul over delisting plans

Shareholders of the Hyderabad-based company allege that the announcement related to delisting was done with a motive of pushing up the stock price and that there was never a serious intention of getting the entity delisted from the bourses. The company is currently listed on the Bombay Stock Exchange and the Delhi Stock Exchange.

Shareholders told FE, on condition of anonymity, that the ballot forms were sent just days before the deadline and the whole process was managed in a way that a majority of shareholders could not exercise their votes. According to Bloomberg, shares of Transgene Biotek surged nearly 30% in a span of 20 days to a high of R14.20 (from August 27, when the decision to consider delisting was announced, to September 17, when a merchant banker was appointed for the purpose).

The average daily volume in the period rose to 23.12 lakh shares against 7.28 lakh shares in April-November. Since the highs of September 17, the stock plunged over 60% to R5.10 as of November 15.

“They (Transgene Biotek) announced delisting of shares with a price tag which was about 2.5 times the market price and put out a deluge of forward looking statements so that the stock price would move higher,” said a Transgene investor who

... contd.