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Shareholders of Transgene Biotek Ltd have blocked the company’s move to delist from the bourses and bring in a Mauritius fund.
In a disclosure to the Bombay Stock Exchange on Wednesday, the Hyderabad-based company said the resolution proposed through the notice of postal ballot dated September 20 2012, for delisting of equity shares of the company from the Indian stock exchanges has not been approved by its shareholders.
Transgene Biotek, which claims to have promising technologies and molecules that needed funds, had roped in Stream Mauritius-based Value Fund.
A pre-condition to the Mauritius fund, a registered foreign institutional investor with SEBI picking up equity in the promoter’s stake, was the delisting of the shares of Transgene Biotek.
The company’s board had approved an exit price not lower than the floor price of Rs 25 a share.
Alternatives
A company source said since the delisting process has stalled, alternatives such as private equity fund or bringing in a strategic investor will have to be explored to infuse funds.
The BSE-listed stock slipped 2 per cent to Rs 5.60.
At a press conference in October, the founder and Managing Director, Koteswara Rao said the Mauritius fund agreed to join the promoter on a long-term basis to support the company’s drug discovery activity. The partnership would include equity participation by Stream Value Fund and certain rewards on drug licensing or sale.
somasekhar.m@thehindu.co.in
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