The stock of DIC India plunged 9.99 per cent on the NSE at ₹391.40, as the delisting offer by its promoter failed to evoke enough response.
DIC Asia Pacific, promoter of DIC India (formerly Dainippon Ink and Chemicals India), had fixed the floor price at ₹174 and an indicative price of ₹260 a share to its shareholders.
Through the reverse book building, which ended on Monday, the company received bids for only 14.56 lakh shares, as against the required number of 16.75 lakh shares for the offer to become a success.
At the end of June, promoters’ stake stood at 71.75 per cent or 65.86 lakh shares.
While the maximum bid came in at ₹750 (7.13 lakh shares), investors have even asked as high as ₹17,400.
Some 7,170 retail investors control 21.83 per cent stake in DIC India. Among the public category, Hitesh Ramji Javeri (2.72 per cent), Harsha Hitesh Javeri (2.27 per cent) and Global Capital Market (2.17 per cent) together hold 7.16 per cent stake in the company.
This delisting offer would be successful only if the shareholding of the acquirer, taken together with the equity shares accepted in the reverse book building process, reaches 82.61 lakh shares, constituting 90 per cent of the fully paid-up equity capital of the company, it said in the offer document.
Downtrend after high The stock, which more than trebled to a high of ₹625 after the company announced its intention to delist the shares in November last year, has been on the downtrend after the delisting offer began on October 14.
According to marketmen, the stock will remain depressed over the next few days.
While the last date for making a second public announcement is November 3, the company will return the shares to the shareholders by November 7.