The Hindu Business Line : Indo Rama may delist from 4 bourses

THE Rs 2,300-crore Indo Rama Synthetics (India) Ltd may voluntarily delist its equity shares from four stock exchanges in the country. The equity shares of the company are currently listed in six exchanges.

Sources said that a special resolution would be moved at the forthcoming annual general meeting (AGM) on June 25 at Pithampur in Madhya Pradesh to obtain shareholders' nod for empowering the board to delist the equity shares from the four exchanges — Delhi Stock Exchange, Calcutta Stock Exchange, Ahmedabad Stock Exchange and Madhya Pradesh Stock Exchange — at an appropriate time.

The equity shares of the company would continue to be listed on the National Stock Exchange and the BSE. The Securities and Exchange Board of India (Delisting of Securities) Guidelines, 2003, permits companies to voluntarily delist its shares from one or more stock exchanges where the shares are listed for more than three years. The delisting is, however, conditional to the company taking shareholders' approval through special resolution.

The reason cited by the company's top management for voluntary delisting is that the volume of trading in the four exchanges is "gradually getting reduced to minimal or almost nil level."

Indo Rama has now told its shareholders that "no particular benefit is available to the shareholders of the company by continuing the listing of the shares on these exchanges except the BSE and the NSE, which provide nationwide trading terminals giving investors access to trading in the company's shares across the country."

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