Maharaja Shree Umaid zooms 20% on delisting offer

At 1210 hours, around 30,000 shares changed hands and there are pending buy orders for 50,431 shares on BSE.

Maharaja Shree Umaid Mills has locked in upper circuit of 20% at Rs 119 on BSE, after the company said that the delisting offer made by its promoters will begin on December 19. The offer will close on December 26.

The promoters propose to acquire 6.53 million equity shares representing 25.19% of the fully paid-up equity share capital of the company from the public shareholder and to voluntarily delist the equity shares from the BSE and CSE. The company set the floor price at Rs 65 per equity share.

“The Acquirer is obliged to accept the discovered price if it is equal to the floor price, but is under no obligation to accept the discovered price if it is above the floor price. The acquirer may at its discretion, acquire the equity shares at the discovered price if it is higher than the floor price or at any price higher than the discovered price,” the company said in a public announcements.

The objective of making the delisting offer is to obtain full ownership of the company which will provide the promoters enhanced operational flexibility to support the business of the company and to provide exit opportunity to the public shareholders, it added.