The Hindu Business Line : TTK Prestige tanks on freezing of de-list move

Coimbatore, Feb. 9 The announcement by the management of TTK Prestige Ltd, a manufacturer of kitchen appliances, to freeze its proposal to de-list the company’s shares from the stock exchanges led to a huge sell-off in the counter in the NSE on Monday, with the stock registering the highest fall in percentage terms though the market held firm.

The company cited the “changed economic situation” to put on hold its decision to de-list the shares from the NSE and BSE.

The company’s shares lost 18.15 per cent value, the highest loss in the NSE on Monday.

After touching a high of Rs 137.90, the shares closed at Rs 108.45.

In the NSE, 1.74 lakh shares of the counter were traded.

It was on September 1 last year that the company informed the exchanges that its promoters – TT Krishnamachari & Co – were desirous of delisting the equity shares of TTK Prestige Ltd from the BSE and the NSE in accordance with SEBI’s delisting guidelines of 2003.

EGM approval

An extraordinary general meeting held on September 25 at Bangalore ratified the proposal.

At the EGM, the Chairman of the company said the proposal would “provide an exit route and liquidity to public shareholders”.

“It will also enable the promoters to re-organise the business and structure of the company,” according to the details of the extraordinary general meeting provided by the company to the NSE.

The Chairman stated that the “floor price for the delisting offer would be based on the 26-week high-low average preceding the public announcement date”.

He also stated that the promoters can take a decision to acquire the shares only if the price discovered by the reverse book building process is “reasonable and acceptable” to the promoters.

The share’s year-high price is Rs 177 and year-low price is Rs 95.95 in the NSE.

In a communication to the exchanges on Monday, the promoters said that after passing the enabling resolution, “there has been a sea change in the overall economic conditions and the general liquidity in the market” and the promoters have at this stage “put on hold any step in the direction of delisting of the company”.

As on January 29, the promoters held 62.10 per cent stake in the equity of the company.

The paid-up share capital at the end of third quarter was Rs 11.33 crore.

During FY 07-08, the company registered sales of Rs 325.94 crore. In the third quarter of current fiscal, the company recorded sales of Rs 121.49 crore and net profit of Rs 6.52 crore.

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