Bharat Nidhi Ltd, a significant shareholder in The Times of India's publisher Bennett, Coleman & Co, has announced a share buyback offer as it delists its shares on Calcutta Stock Exchange and shifts to the dissemination board of the National Stock Exchange (NSE).
Bharat Nidhi Ltd, a significant shareholder in The Times of India’s publisher Bennett, Coleman & Co, has announced a share buyback offer as it delists its shares on Calcutta Stock Exchange (CSE) and shifts to the dissemination board (DB) of the National Stock Exchange (NSE). The offer made is in accordance to the SEBI order dated 2012 which provides for an exit route the shareholders of the company moving from regional to national stock exchange. The company was shifted to the DB of the NSE with effect from February 12, 2019 following the NSE circular dated February 11, 2019 and CSE notice of February 13, 2019.
Bharat Nidhi is one of the 63 companies which were listed on the Calcutta Stock Exchange and currently transferred to the DB. The board of directors of the firm in their meeting on June 7, 2019 had approved the buyback, subject to nod of shareholders, offering an exit price of Rs 11,229 for the maximum number of 21,791 shares for an aggregate amount of up to Rs 24,46,91,139.
Bharat Nidhi counts among its associates Bennett, Coleman & Co Ltd and Bennett Property Holdings Co Ltd, in which it holds 24.41 per cent stake each. Bennett, Coleman & Co Ltd is the publisher of major national dailies The Times of India and The Economic Times. Other than this, Bharat Nidhi also holds shares in Times Publishing House Ltd and Times Internet Ltd.
SEBI, in May 2012, had offered two options to the companies listed on the de-recognised stock exchanges and recognised stock exchanges seeking voluntary surrender of recognition — either to offer exit route to the existing shareholders through buyback or get listed on nation-wide stock exchanges such as the BSE and the NSE. The dissemination boards were established with an aim to offer a platform for buyers and sellers to meet each other.
“Since the Buyback is more than 10% of the total paid-up equity share capital and the reserves of the Company, pursuant to Section 68(2)(b) of the Act, the Company is in the process of seeking approval of its shareholders by way of a special resolution by way of postal ballot,” the company said. The results of the postal ballot are likely to be declared on or before July 29, 2019, it added. The buyback proposed by the company would be for up to 25 per cent of the total paid up equity share capital, the company also said.