Binani Cement on Wednesday said its promoters will acquire all the shares held by public and delist the company from the stock exchanges.
Pursuant to the promoter and holding company Binani Industries' decision to acquire the entire public shareholding, the company has decided to delist from the BSE and National Stock Exchange, a filing with the stock exchanges said. Public shareholding in the company currently stands at 30.1 per cent and at the current price of Rs 95.65 a share it is worth around Rs 550 crore (Rs 5.5 billion).
However, the offer price has not been disclosed yet. "Board of Directors of the Company at the Board Meeting, held on October 6, 2010, decided to purchase the entire public equity shareholding of its subsidiary Binani Cement, by giving an exit opportunity to the public shareholders...," promoter Binani Industries said in a separate filing to Bombay Stock Exchange.
As per the latest information available on BSE, promoters of the Binani Cement have 69.9 per cent stake in the company whereas remaining 30.1 per cent shares are with the public.
The news of delisting pushed the shares of Binani Cement by 14.1 per cent while closing at Rs 95.65 per share, whereas the shares of Binani Industies shares jumped by 10.3 per cent to Rs 121.45 per share at Bombay Stock Exchange.
