Shreyas Shipping and Logistics crashed 20 percent on September 29 after promoter Transworld Holdings Limited (THL) rejected the discovered price for the delisting process and made an offer much below the market price.
As against the discovered price of Rs 890 a share, THL proposed a counter-offer of Rs 400. The promoters' offer is at a 16 percent discount to the September 28 closing price of Rs 473.83.
After announcing intention to delist Shreyas Shipping, THL offered an indicative share price of Rs 375 apiece. The bidding period for reverse book building started on September 20 and ended September 26.
Over 90 percent of the total issued capital was tendered, which is the minimum tender condition, making the reverse book-building process a success. Shareholders tendered 4.3 million shares, while the minimum requirement was 4.07 million shares.
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However, the discovered price arrived through reverse book building was Rs 890. This was rejected by THL.
In a regulatory filing, the promoter said, “THL has decided to reject the discovered price and make a counter-offer at a price of Rs 400.00. As per SEBI Delisting Regulations, the counter-offer price provided by THL is above the book value of the company as on June 30, 2023 i.e. Rs 373.48.”
As of June 2023, the promoters had a 70.44 percent shareholding in SSL, which translates to 1.55 crore shares, while the public held 29.39 percent.
Shreyas Shipping is in coastal shipping sector and owns as well as charters container and bulk vessels.
Over the past year, the share price has gained 13.05 percent and in the past six months, it has surged 55.43 percent. In comparison, the Shipping Corporation of India jumped 21.43 percent in six months, while Cochin Shipyard has more than doubled traders' investments.
At 12.30 pm, the stock was trading at RS 391 on the National Stock Exchange, down 17.48 percent from the previous close.
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