ABC Ltd. a company whose equity shares are listed at BSE and NSE is seeking delisting of its equity shares from both the recognised stock exchanges. It provides an exit opportunity to all public shareholders in accordanc

CS Executive · Capital Markets & Securities Laws · PYQS · December 2017
ABC Ltd. a company whose equity shares are listed at BSE and NSE is seeking delisting of its equity shares from both the recognised stock exchanges. It provides an exit opportunity to all public shareholders in accordance with SEBI (Delisting of Equity Shares) Regulations, 2009. Calculate the minimum number of equity shares to be acquired for the delisting offer to be successful. Also determine the final offer price from the details given hereunder : Number of shares Percentage holding Promoter 75,00,000 75 Public 25,00,000 25 1,00,00,000 100 The floor price in terms of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 is ₹ 550 per share. Assume that all the public shareholders holding shares in the demat mode had participated in the book building process as follows : Bid Price (₹) Number of Investors Demand (Number of Shares) 550 5 2,50,000 565 8 4,00,000 575 10 2,00,000 585 4 4,00,000 595 6 1,20,000 600 5 1,30,000 605 3 2,10,000 610 3 1,40,000 615 3 1,50,000 620 1 5,00,000 48 25,00,000

Answer & Explanation:

(A) Calculation of minimum Numbers of Equity Shares & Final offer price Bid Price (Rs). Number of Investors Demand (No.of Shares) Cumulative Demand (No. of Shares) 550 5 2,50,000 2,50,000 565 8 4,00,000 6,50,000 575 10 2,00,000 8,50,000 585 4 4,00,000 12,50,000 595 6 1,20,000 13,70,000 600 5 1,30,000 15,00,000 605 3 2,10,000 17,10,000 610 3 1,40,000 18,50,000 615 3 1,50,000 20,00,000 620 1 5,00,000 25,00,000 48 25,00,000 As per SEBI (Delisting of Equity Shares) Regulations, 2009 a delisting offer made shall be deemed to be successful only if the post offer promoter shareholding taken together with the shares accepted through eligible bids at the final price determined reaches ninety percent of the total issued shares of that class. Let the minimum number of equity shares to be acquired be x: x + 75% = 90% of total issued shares x = 15% of total issued shares x = 15,00,000 shares Final offer price = Price at which post offer promoter shareholding reaches the threshold of 90% i.e., ₹ 600/- per share.

Topics: Delisting of Equity Shares

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