Shreyas Shipping's proposed delisting offer failed after Transworld Holdings Ltd., the promoter entity, was unable to acquire the required 90% of the outstanding shares for the offer to succeed.

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As per minimum acceptance conditions for the delisting offer, the cumulative number of shares held by promoters along with those acquired via the delisting process should be equal to or more than 90% of the total paid-up equity share capital of the company.

Transworld Holdings had made a counteroffer to Shreyas Shipping's public shareholders to acquire their shares at Rs 400 apiece. The counteroffer was made after the discovered price as per the reverse book building process came up to be Rs 890 apiece.

The counteroffer had opened on Wednesday, October 11 and closed on Tuesday, October 17. The initial plan was to purchase up to 64.9 lakh equity shares of the company from public shareholders.

However, an exchange filing on Tuesday, October 17, night revealed that promoters only managed to repurchase 36.04 lakh shares via 2,724 successful bids via the reverse book-building process and the counteroffer.

Post the counteroffer, the promoter and promoter group entities managed to acquire only an 87.86% stake in the company, which fell short of the mandatory 90% requirement.

"As the post counter offer shareholding of the acquirer, along with the other promoter and promoter group members, does not exceed 90% of the total issued number of equity shares, the counter offer is considered to have failed in terms of the delisting regulations," the exchange filing said.

Shares of Shreyas Shipping ended 1% lower on Tuesday and have declined over 10% during the last five trading sessions. In fact, the stock has declined in 11 of the last 13 trading sessions.

(Edited by : Amrita)

First Published:Oct 18, 2023 6:02 AM IST