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Rhodia Specialty Chemicals spurts after promoter sets indicative price for delisting

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Capital Market
Last Updated : Feb 20 2014 | 11:55 PM IST

Rhodia Specialty Chemicals India hit an upper circuit limit of 10% to Rs 797.50 at 14:06 IST on BSE after Solvay SA, one of the promoter of the company, pegged an indicative offer price of Rs 675 per share to delist shares of the company.

The company made the announcement after market hours on Wednesday, 19 February 2014.

Meanwhile, the BSE Sensex was down 88.77 points, or 0.43%, to 20,634.20.

On BSE, so far 3,450 shares were traded in the counter, compared with an average volume of 680 shares in the past one quarter.

The stock hit a low of Rs 789.90 in early trade. The stock hit a record high of Rs 843.40 on 19 December 2013. The stock hit a 52-week low of Rs 325.10 on 13 May 2013.

The stock had underperformed the market over the past one month till 19 February 2014, sliding 5.84% compared with the Sensex's 1.62% fall. The scrip had, however, outperformed the market in past one quarter, rising 8.35% as against Sensex's 0.80% decline.

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The small-cap company has an equity capital of Rs 3.38 crore. Face value per share is Rs 10.

Rhodia Specialty Chemicals India has received a communication from Solvay SA, pursuant to letter dated 19 February 2014 informing that, after considering the prevailing market conditions, the indicative price at which the acquirer may be willing to accept the equity shares tendered in the delisting offer is Rs 675 per equity share, Rhodia Specialty said in a statement.

On 14 November 2013, the company had determined the floor price of Rs 442.64 per share for the proposed delisting.

The company said, this indicative offer price should in no way be construed as a ceiling or maximum price for the purposes of the reverse book building process and the public shareholders are free to tender their equity shares at any price irrespective of the indicative offer price.

The promoter proposed to acquire up to 2.92 lakh equity shares, representing 8.673% stake, held by public shareholders in the company.

As on 31 December 2013, promoters held 91.33% stake in Rhodia Specialty Chemicals India. Of the total promoter holding, Rhodia UK held 72.93% stake and Solvay Participations France held 18.39% stake.

Net profit of Rhodia Specialty Chemicals India declined 98.12% to Rs 0.69 crore on 32.20% rise in net sales to Rs 69.84 crore in the quarter ended December 2013 over the quarter ended December 2012.

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First Published: Feb 20 2014 | 2:10 PM IST

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