It said the IDR shares would not be purchased anymore by J.P. Morgan Securities but can be purchased by anyone else on the floor of the LSE. It has also made other procedural amendments. “We believe that due to the ongoing Covid-19 pandemic (including lockdown
at various places, work from home by various organisations, and restricted movement of people to essential services), the IDR holders may face considerable issues in submitting hard copies of the withdrawal orders and the enclosures thereto. Accordingly the company has decided to provide an option of submission of soft copy of the withdrawal orders and the relevant enclosures by the IDR holders,” it said.
Another firm, Orchid Securities, made a similar announcement.
“Due to the Covid-19 crisis and subsequent lockdown, the public shareholder’s/ seller’s broker(s) are finding difficulty in tendering the shares,” it said. It extended the closing of the offer from April 8 to April 24. It was unclear if any additional step would be taken since the lockdown
has since been extended. An email sent to those managing the offer did not immediately receive a reply. The shares were to be acquired as part of an open offer under the takeover regulations.
Alok C Churiwala, managing director at Churiwala Securities, said there can be a lot of offline work which also needs the presence of a full broking team. This is difficult now. “Every broking office is working with a skeletal staff,” he said.
Several clients may not be using internet banking facility. The lockdown
also makes it difficult to do the necessary documentation for completing the tender process, said another senior broker.