Business Daily from THE HINDU group of publications
Tuesday, Jul 24, 2007
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Business Daily from THE HINDU group of publications Tuesday, Jul 24, 2007 ePaper |
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Corporate
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Restructuring Info-Tech - Telecommunications Markets - Stocks Industry & Economy - Income Tax
Ambarish Mukherjee New Delhi, July 23 Shareholders of Shyam Telecom Ltd are in a quandary following the scheme of arrangement involving four group companies through which the shareholders received 794 shares of group company Shyam Telelink Ltd for every 100 shares of Shyam Telecom they held and also 35 shares of restructured Shyam Telecom. The scheme of arrangement involved four companies, Shyam Telecom , Shyam Telecom Manufacturing , Shyam Telelink STLL and Shyam Basic Infrastructure Projects Private . Through the scheme Shyam Telecom Manufacturing was merged with Shyam Telecom. Shyam Basic Infrastructure took over the liabilities of Shyam Telecom and also some shares of Shyam Telelink. Now with less than 10 days left for individuals to file their annual income-tax returns, non-listing of Shyam Telelink shares are creating problem for individual shareholders because there is no convincing valuation available. The company had earlier said that Shyam Telecom would be listed by December 2006. “Till date there is no information as to when this stock would be listed. The company is also not replying to shareholders’ queries regarding the valuation of Shyam Telelink stocks. This would be necessary for the individual shareholders who will have to file their annual income tax returns by the end of July,” said Mr Anil Jindal, Director of Jindal Securities. “We have also sought information from the stock exchanges as to why the share is not being listed but neither the BSE nor NSE are responding.”. Company officials, when contacted, told Business Line that “though our scheme of arrangement had received in-principle approval from both the BSE and NSE, following which we went to the Rajasthan High Court and received its ap proval, now the exchange authorities are saying that the scheme is unique and there is no precedence or rules for listing the shares and the file has been referred to the SEBI.” “The problem is that the rules do not permit us to approach the SEBI directly and we are following up the matter almost on a daily basis with the exchanges,” the officials said. SEBI’s response
The Central Public Information Officer of the SEBI, in response to an application made under the Right to Information Act, has informed that the company had initially applied for listing with the stock exchanges in August 2006. Another revised application for relaxation of rules was made by the company in September 2006, following which the BSE invited confirmation from the company regarding compliance with SEBI guidelines. The company had submitted the required report in October 2006 and further documents were submitted by the company in March this year, the SEBI information officer said. The public announcement regarding the restructuring was made through the stock exchanges on July 18, 2006. Trading of Shyam Telecom shares were suspended on July 24, 2006, for the restructuring exercise to be completed and the closing price on that date was Rs 60.35. Post-restructuring the counter reopened on November 6, 2006, and it closed at Rs 137.40 that day. This Friday, Shyam Telecom closed at Rs 88.95. However, currently, the whole issue appears to be hanging in limbo between the exchanges and SEBI. ‘Not satisfied’
Market sources said that the exchanges are not granting listing to Shyam Telelink stocks because the authorities are not satisfied with the scheme of arrangement through which these shares were allocated, though the scheme was approved by the Rajasthan High Court. Meanwhile, grey market transactions have started in Shyam Telelink stocks and shareholders have received offers for selling their shares at prices ranging between Rs 10and Rs 12 per share, brokers said.
More Stories on : Restructuring | Telecommunications | Stocks | Income Tax
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