Indo Tech Transformers has informed the stock exchanges that its delisting offer made to public has turned unsuccessful due to weak response.
The Chennai-based company’s stock tumbled five per cent to Rs 108.50 on the BSE.
As against the target of 27.24 lakh shares (representing 25.65 per cent paid-up capital of the company), it received bids for only 13.47 lakh shares, of which 10.14 lakh shares were tendered at or below the discovered price of Rs 250.
“The number of offer shares tendered is less than the minimum number of offer shares required to be accepted by the Acquirer for the Delisting Offer to be successful in terms of Regulation 17 of the Delisting Regulations. Thus, the delisting offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations,’’ the company said.
Following this, the equity shares of the company will continue to remain listed on the NSE and the BSE.
The company had invited its shareholders to tender their bids through the delisting window that was open between January 23-30.
The equity shares tendered by the public shareholders in the reverse book building process will be returned to them before February 13. “The public shareholders holding equity shares in dematerialised mode are advised to check their demat accounts to confirm the receipt of the equity shares tendered,’’ it said.