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C.R. Sukumar

Hyderabad , June 28

IN a bid to provide an exit route to the shareholders of the city-based Rockwool (India) Ltd, its foreign collaborator - Alghanim Industries (Mauritius) Ltd — has announced an open offer through reverse book building route.

Rockwool shareholders were facing liquidity problems with the equity shares, listed on the Mumbai and Hyderabad stock exchanges, sporadically being traded.

Of the 4.09 crore equity shares of Rs 10 each, the foreign collaborator holds 3.17 crore shares, amounting to 77.71 per cent. Mutual Funds, Banks and financial institutions hold 3.54 lakh shares, constituting 0.86 per cent, while the Indian public, private corporate bodies, NRIs and OCBs together hold 87.64 lakh shares, representing 21.43 per cent holding.

A senior Rockwool official told Business Line that Alghanim has decided to make a voluntary offer in the capacity of promoter to acquire 51.89 lakh fully paid-up shares and 39.18-lakh partly paid-up shares, totalling to 91.18 lakh shares, representing 22.29 per cent of the capital.

The company has recently obtained the approval of its shareholders for delisting of securities.

"The exit price will be determined under the reverse book building process. The acquirer has obtained a certificate from an independent Chartered Accountant with respect to fixation of floor price, which stood at Rs 4.30 per share. The acquirer proposes a floor price of Rs 5 per fully paid up share. In the case of partly paid-up securities, the price will be determined as per the guidelines of reverse book building.

The offer opens on July 4 to close on July 6. The exit price will be announced on July 8," the official said.

Stating that the exit price would be determined in accordance with the guidelines as the price at which maximum number of shares was offered, the official said, "However, the acquirer is under no obligation to accept the exit price. If the acquirer does not accept the exit price, he will have no obligation to acquire any shares tendered. Accordingly, the offer will not proceed. If the acquirer accepts the exit price, he will make available to the National Securities Clearing Corporation Ltd the necessary funds required to settle the acceptance of the relevant bids."

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