Business Standard

Fulford India soars 75% on delisting plan

Shares of the company on Friday ended 10% higher at Rs 1,195 on BSE

BS Reporter Mumbai
Fulford India saw a 75 per cent jump in stock price this week, after its board approved the proposal for delisting. Shares of the company on Friday ended 10 per cent higher at Rs 1,195 on the BSE. Fulford India is a subsidiary of US-based Merck & Co.

On April 26, the Fulford board had approved voluntary delisting offer proposed by its promoter entity, Dashtag. Shares of Fulford have gained 75 per cent from Rs 682 on April 25, a day before delisting announcement, to Rs 1,195 on Friday. The promoters of the company might have to spend more Rs 110 crore on the delisting offer for acquiring 25 per cent shares held by public shareholders at an ‘indicative price’ of Rs 1,150, announced by the company.
 

The company said the promoter has given a commitment to acquire all shares tendered in the delisting bid, if the ‘discovered price’ is less than or equal to the indicative price.

The discovered price is arrived through the reserve book building (RBB) process, where the public shareholders of the company get to bid at any price higher than the floor price. The price at which maximum bids are received becomes the discovered price.

The floor price for the delisting offer has been set at Rs 701.71 per share.

As per rules, the promoters of Fulford will have to acquire at least 15 per cent shares in through the RBB offer to ensure the delisting bid is successful.

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First Published: May 03 2014 | 12:45 AM IST

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