Shares of Fulford (India) were locked at the 20 per cent upper circuit at ₹823 on the BSE after the company said its promoter offered a substantial premium to delist shares of the Indian unit.

The BSE-listed stock witnessed trading volumes of 1,644 shares compared with a two-week average of 1,410 shares.

The company after market hours on Friday informed the exchanges that it has received a letter from Dashtag, the promoter of the company, expressing intention to make a voluntary delisting offer to the public shareholders of the company.

The indicative price for the delisting was fixed at ₹1,150 a share as against Friday’s closing price of ₹685.65. The indicative price is a 67.67 per cent premium over Friday’s price.

However, on Saturday, the board of directors of Fulford India had fixed the floor price for the delisting at ₹701.71 a share.

Shareholders nod

The board had also approved the delisting offer from its parent. Fulford India also plans to seek the approval of the shareholders through a postal ballot in terms of the delisting regulations.

Dashtag, the promoter, plans to acquire 9.76 lakh shares, representing 25.05 per cent of the paid-up equity share capital of the company. Promoters currently own 74.95 per cent stake in Fulford (India).

Dashtag’s objective in making the delisting offer is to obtain “full ownership” of Fulford India, which will provide “enhanced” operational flexibility to the acquirer’s business in India, the company said in the notice.

Additionally, the foreign promoter believes that on account of low liquidity in Fulford (India)’s equity shares, the delisting offer would provide the public shareholders with the opportunity to exit fully at an attractive price.

The acquirer is of the view that the indicative price is attractive for the public shareholders of the target company subject to the acquirer’s right to accept or reject the price finally discovered pursuant to the reverse book building process under the delisting regulations, Fulford (India) said.

Fulford (India) reported a net profit of ₹3.48 crore for the quarter ended December 2013 as compared to a loss of ₹1.03 crore in the same period last year. Fulford (India) manufactures antibiotics and anti-allergy products.

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