Ricoh India tanks 20% on failed delisting offer

Ricoh India has tanked 20% to Rs 173 on BSE after the failure of delisting offer announced by Ricoh Asia Pacific Pte, the promoter of the company.

The company said, Ricoh Asia Pacific Pte has rejected price of Rs 225, where the total number of shares to be acquired for successful delisting offer were tendered, as reported on the BSE.

The total number of equity shares tendered by the public shareholders in the delisting offer, as per BSE reports, were 6.94 million, of which the number of offer shares tendered at or below the discovered price of Rs 200 per share were 4.18 million.

Furthermore, the number of offer shares tendered is less than the minimum number of offer shares required to be accepted by the promoter for the delisting.

“Accordingly, the delisting offer is deemed to have failed and hence the promoter will not acquire any offer shares tendered by the public shareholders pursuant to the delisting offer and the equity shares of Ricoh India will continue to remain listed on the BSE,” it added.

The Ricoh India stock has rallied 262% from Rs 60 after Ricoh Asia Pacific Pte Ltd indicated its intention to delist the Indian arm on November 8. The benchmark S&P BSE Sensex gained 22% during the period.

Ricoh Asia Pacific Pte Ltd had proposed to acquire up to 10.49 million shares of the company, representing 26.4% of the total share capital, from the public shareholders.

The foreign promoter expressed its intention to pay an indicative price of up to Rs 120 per share to acquire the shares offered to it in the delisting offer.

At 1050 hours, around 6,504 shares changed hands and there are pending sell orders for 577,616 shares on the BSE.