The counteroffer bidding period for Shreyas Shipping and Logistics Ltd's (SSL) delisting process commenced on October 11 and is scheduled to conclude on October 17 wherein the promoter entity Transworld Holdings has submitted a counter bid of Rs 400 a share. The counter-proposal is at a 7 percent premium to the stock's closing price.
However, the price discovered through the reverse book-building process was much higher than the price offered by the promoter, coming at Rs 890. “Transworld Holdings has decided to reject the discovered price and make a counteroffer at a price of Rs 400 a share,” the company said in a recent exchange filing.
The stock also tanked 20 percent after the promoters rejected the discovered price for the delisting process and made an offer much below the market price on September 29.
The reverse book-building phase took place from September 20 to September 26. During this period, the company successfully acquired 90 percent of the total issued capital at Rs 890 per share.
During the reverse book-building process, over 90 percent of the total issued capital was tendered, meeting the minimum tender condition. Shareholders submitted a total of 4.3 million shares, surpassing the minimum requirement of 4.07 million shares, making the reverse book-building process a success.
Also Read | Shreyas Shipping tanks 20% as promoters reject delisting discovery price
Reverse book-building is a method designed to collect sell orders online from shareholders through their respective book-running lead managers (BRLMs). This mechanism is typically used by companies looking to delist their shares through the buyback process.
As of the company's June shareholding data, Transworld Holdings and its affiliated entities collectively held 70.44 percent stake in the shipping company while the remaining 29.39 percent were owned by public shareholders.
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