The prospect of a delisting offer has triggered strong buying in the Panasonic Appliances, with the company’s shares gaining 82% since it informed the exchanges in October that its Japanese parent Panasonic Corporation wants to delist the company’s shares.
While, the company’s shares are trading much higher than indicative price and floor price, a source familiar with the delisting offer suggests that the company is in talks with investors and the response has been positive so far.
Last month, the company disclosed the indicative offer price at R220. The company’s shares are currently trading 46% higher at R321.05 apiece. In October, the exchanges were informed that the floor price is at R167.65 per share.
The delisting offer of Panasonic Appliances will be the first to take place under the revised Sebi norms. According to the new norms, a delisting offer would only be successful if the promoters’ shareholding reaches the 90%-threshold limit. The promoters alsohave to demonstrate that “they have contacted all public shareholders about the offer in the manner prescribed, then the condition of mandatory participation of 25% of the public shareholders holding shares in demat mode would not be applicable” under the revised norms.
As of December quarter, the number of public shareholders in Panasonic Appliance stood at 6,758. The company is in the process of reaching out to the public shareholders, the source said.
The promoter holding currently stands at 74.22%. In October, Panasonic Corporation bought 17% stake from the Reddy Group (co-promoter of the company) at R157.5 per share to become the sole promoters. To raise its stake further to 90%, the promoters need another 15.51 lakh shares. At the indicative price of R220, the company would have to shell out R34.13 crore to acquire these shares.