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Anup Engineering, an arm of city-based denim major Arvind Ltd, is set to delist from the defunct Ahmedabad Stock Exchange (ASE) by making a delisting offer to about 9 per cent of its public shareholders. According to the available data till closing hours of the last day of the delisting issue on June 2, the company received bids for only 16,221 shares as against the total publicly held 30,352 shares.
The delisting of the shares of face value of ₹100 each will be done at the offer/floor price of ₹1,550 an equity share. Notably, bids of 1,232 shares were tendered at the floor price, while the highest bid of 9,334 shares was made for the price of ₹11,000.
Anup Engineering has strong financial and operational record with turnover of about ₹130 crore and net profit of over ₹10 crore for the fiscal 2014-15. “The company has been growing at the top-line CAGR of 7-8 per cent for the past five years. It is financially strong with a debt to equity ratio of 0.3,” Jayesh Shah, Director & CFO, Arvind Ltd, told BusinessLine . The voluntary delisting follows the ASE’s derecognition post SEBI order.
When asked about the possibility of incomplete delisting offer, Shah maintained that since the promoters hold 91 per cent stake in the company, which fulfils the SEBI norm, the delisting offer is merely a formality. “Those who have tendered their bids would be allowed to exit. Those who have chosen to stay as shareholders of the company will continue as our shareholders. They will also get one year time in case they want to exercise this option,” he added.
Listing on NSE, BSESince the listing on main boards such as the NSE or the BSE would require bringing down promoter holding to 75 per cent, it would require dilution of promoter’s equity or raising additional equity.
“Currently, there are no capex plans. We will consider listing on main boards when there will be requirement of funds in the company,” Shah said.
Set up in 1963, Anup Engineering was acquired by Arvind Ltd in 1990s through the Board for Industrial and Financial Reconstruction after it turned financially sick.
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