Business Standard

Delisting candidates rally as Sebi sticks to shareholding norms deadline

Fresenius Kabi Oncology, Astrazeneca Pharma India, BOC India & Honeywell Automation rise more than 5% each

Related News

Shares of the multinational companies (MNCs), which would be probable candidates, are in limelight on the bourses on reports that the market regulator Sebi said that it will not extend the deadline to comply with minimum public shareholding norms.

Fresenius Kabi Oncology, Astrazeneca Pharma India, BOC India, Honeywell Automation India, Sharp India, Wendt India, Kennametal India and Elantas Beck India, having promoter holding more than 75% each, have rallied more than 5% each on the Bombay Stock Exchange (BSE) at 1121 hours.

In 2010, SEBI had come out with norms that government firms should have a minimum public shareholding of 10% while for private companies it is 25%. These guidelines were to be complied within three years.

While the private companies have to meet norms by June 2013, for public sector undertakings (PSUs) the deadline is August 2013.

According to analyst at ICICI Securities, the corporates, particularly fundamentally strong may not have the inclination to increase their public holding and may resort to delisting to have better flexibility in taking business decisions.

The case for delisting becomes stronger in the current weak trend prevailing in the equity markets, which has led to a substantial fall in stock prices providing an opportunity for such corporates to buy out the remaining stake with the public at lower valuations, he added.

Read more on:   
|
|

Delisting candidates rally as Sebi sticks to shareholding norms deadline

Fresenius Kabi Oncology, Astrazeneca Pharma India, BOC India & Honeywell Automation rise more than 5% each

Shares of the multinational companies (MNCs), which would be probable delisting candidates, are in limelight on the bourses on reports that the market regulator Sebi said that it will not extend the deadline to comply with minimum public shareholding norms.

Shares of the multinational companies (MNCs), which would be probable candidates, are in limelight on the bourses on reports that the market regulator Sebi said that it will not extend the deadline to comply with minimum public shareholding norms.

Fresenius Kabi Oncology, Astrazeneca Pharma India, BOC India, Honeywell Automation India, Sharp India, Wendt India, Kennametal India and Elantas Beck India, having promoter holding more than 75% each, have rallied more than 5% each on the Bombay Stock Exchange (BSE) at 1121 hours.

In 2010, SEBI had come out with norms that government firms should have a minimum public shareholding of 10% while for private companies it is 25%. These guidelines were to be complied within three years.

While the private companies have to meet norms by June 2013, for public sector undertakings (PSUs) the deadline is August 2013.

According to analyst at ICICI Securities, the corporates, particularly fundamentally strong may not have the inclination to increase their public holding and may resort to delisting to have better flexibility in taking business decisions.

The case for delisting becomes stronger in the current weak trend prevailing in the equity markets, which has led to a substantial fall in stock prices providing an opportunity for such corporates to buy out the remaining stake with the public at lower valuations, he added.

image

Read More

Sebi imposes fine on three persons for lack of disclosure

Pursuant to this purchase, their total holding rose to 11.2% in the company, crossing a threshold limit of 10% to attract the provisions of Sebi's ...

Recommended for you

Quick Links

Market News

Hindustan Unilever falls 7% in two days

The stock dipped nearly 5% at Rs 870, extending its previous day's 2.6% fall on the National Stock Exchange.

UFO Moviez sets Rs 615-625 price band for IPO

Offer will open for subscription on April 28

Symphony gains post March quarter results

The stock is up 2% at Rs 3,065 and hit a record high of Rs 3,140 on the NSE in intra-day trade.

HCL Tech Q3 results well below estimates

Analysts concerned as growth of key segments - software services & IMS - fall to single digit

Silver up 0.3% on global cues

Metal for delivery in July contracts gained 0.25%

 

Back to Top