Shareholders representing 10 per cent of Schneider Electric President Systems (formerly APW President Systems) are seeking a re-listing at a time when the management is ‘surreptitiously’ looking to delist the firm as it is concerned about stricter disclosure norms.

At the company’s AGM, about 50 HNI shareholders were livid at the manner in which the Schneider India management is arm-twisting minority shareholders to tender their shares at prices they say are much below market rates.

Investor P Sridhar said: “The company is offering investors an exit option, but the exit price of ₹200 a share does not take into account the company’s improving financial performance. Minority shareholders are being short-changed.”

Schneider Electric President Systems is a designer, manufacturer and supplier of standard and customised enclosure systems in India; Schneider Electric South East Asia (HQ) Pte Ltd is the promoter, holding 75 per cent of the shares.

Earlier buyback failed

There is a back-story to the shareholders’ grouse. The company was listed on the Bengaluru and Pune stock exchanges, which were earlier classified as regional stock exchanges. In 2011, Schneider Electric South East Asia acquired 55 per cent of the share capital from the promoters and up to 20 per cent from public shareholders, offering ₹195 a share.

Subsequently, a de-listing offer was made in December 14, 2012, at ₹195 a share, but of the 15.12 lakh shares, only 6.79 lakh shares were tendered in the de-listing offer. Of this, only 3.81 lakh shares were tendered at or below the discovered price of ₹250 a share. Hence, the de-listing offer, which required the consent of 90 per cent of the public shareholders, failed.

Subsequently, shares of Schneider Electric were moved to the dissemination board of the NSE and allowed to trade from July 2016, but investors have not been able to find buyers at the ‘right’ price. Earlier this year, Schneider again offered investors an exit option, which has six more months to go.

But investors are in favour of a re-listing of the stock in one of the national stock exchanges, including the Metropolitan Stock Exchange.

Further, shareholders pointed out that at the end of December 2016, the earnings per share was ₹8.4. “If the stock had re-listed at the stock exchanges, it could easily have traded at ₹450-500; all this time, the management assured us they were in the process of listing,” said Kapil Chopra, another investor.

Shareholders also questioned the rationale of removing the valuation data from the company website.

The meeting, which was punctuated by periodic outbursts, was focussed on a single point. “If the company has given a positive roadmap, the hesitancy to give value back to investors is a sign of questionable corporate governance standards,” says Ashish Chugh, a shareholder.

Irated shareholders even sought the resignation of directors.

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