INEOS Styrolution tanks 20% as promoter rejects delisting discovery price

Topics Buzzing stocks | Markets

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Shares of specialty chemicals company INEOS Styrolution India were locked in 20 per cent lower circuit at Rs 700 on the BSE on Friday after the company's promoter rejected the discovered price of Rs 1,100 for the proposed voluntarily delisting of shares. The promoter also decided not to make any counter offer, accordingly, the delisting offer is deemed to have failed in terms of the delisting regulations, the company said.

“The promoter, namely INEOS Styrolution APAC Pte. Ltd., has decided to reject the discovered price of Rs 1,100 per equity share, determined pursuant to the book building process, and has also decided not to make any counter offer in terms of Regulation 16(1A) of the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, as amended (“Delisting Regulations”),” ICICI Securities said on behalf of INEOS Styrolution India.

The promoter proposed to acquire upto 4.44 million equity shares, representing 25 per cent of the equity share capital of the company, that were held by the public shareholders of the company at price of Rs 480 per share.

The objective of the delisting offer was to increase ownership in the company, which will provide the Promoter with increased operational flexibility to support the company’s business; and given the low liquidity of the equity shares on the stock exchanges, to provide an exit opportunity to the public shareholders of the company.

As of June 2020, the promoter held 75 per cent stake in INEOS Styrolution India. Out of 25 per cent public shareholding, individual shareholders held 13.16 per cent stake, followed by mutual funds (6.07 per cent) and bodies corporate (3.31 per cent), the shareholding pattern data shows.

Till 10:56 am, a combined 13,700 equity shares have changed hands and there were pending sell orders for 320,000 shares on the NSE and BSE.

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