Binani Cement, part of the Braj Binani group, is set to delist from Indian bourses, as a culmination of its share buy-offer to shareholders in this regard. The promoters have agreed to accept all the shares tendered at or below the discovered price as defined in the rules, which will take their shareholding above 90 per cent.
In October 2010, Binani Cement’s board had decided to voluntary delist its shares from Indian bourses, later approved by the company’s shareholders through a postal ballot. The company’s delisting offer opened on February 7 and closed on February 11.
Binani Industries, which owns 69.90 per cent stake in the cement maker, has accepted the discovered price of Rs 90 per share through the reverse book-building route, the company said in a notice to stock exchanges. Binani Cement’s shares will be delisted from the National Stock Exchange and the Bombay Stock Exchange (BSE) once the promoters buy back shares tendered in the offer at or below '90 per share.
A delisting offer is deemed successful if, once it concludes, the shareholding of the promoter, taken together with the shares accepted through eligible bids at the final price determined, reaches the higher of 90 per cent or the aggregate percentage of pre-offer promoter shareholding and 50 per cent of the offer size.
In delisting offers, a floor price is given to public shareholders, which is an average of the stock’s traded price preceding 26 weeks from the date of public announcement.
