Promoters of East India Securities Limited has fixed ₹1,306 as the floor price to acquire shares from the public as a part of the delisting offer.

Vivek Agarwal, Promoter currently owns 72.51 per cent of the total issued and the paid-up equity share capital of the company. Agarwal wants to acquire 27.49 per cent of the total issued and the paid-up equity share capital of the company from the public investors. The bid will open on November 30 and close on December 6.

Allcargo Logistics announces initial plan to delist shares

Enhancing brand value

The proposed delisting would enable the members of the promoter group to obtain full ownership of the company, which in turn will provide enhanced operational flexibility to support the company’s business.

Modern India gets nod for delisting

“The company had got itself listed with the aspiration that listing will enhance its brand name and visibility, and would help attract retail clients for nine trading and depository accounts and allied services. It had also been hoped that the increased branding will aid in attracting top talent and listing would allow a good platform for grant of options,” the offer document said,

“However, though the treasury operations and proprietary trading division have done reasonably, it has been observed that listing has not brought any benefits in terms of increased branding and visibility and the company’s retail trading and depository activities have not performed up to optimum levels as compared to other players in the market,” the offer document added.

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