Chettinad Cement surges 50% ahead of delisting offer

Board meet on May 15, to consider the delisting proposal

Chettinad Cement Corporation has locked upper circuit of 20% at Rs 847, also its lifetime high after its promoters plan to delist the company’s shares from local stock exchanges by making a voluntary offer to public shareholders.

“The board of cement and cement makers will meet tomorrow to consider the delisting proposal,” the company said in a filing to the stock exchanges.

The promoters hold 88.4% stake in the company, while the remaining 11.6% equity is held by the public, including 3.3% by institutions and 4.7% by corporate, according to shareholding details available as on March 31, 2012.

The stock has risen ahead of the delisting announcement, gaining 50% from Rs 564 in past three trading days on the National Stock Exchange. A combined 22,386 shares have already changed hands on the counter so far and there are pending buy orders for 5,478 shares on the NSE and BSE.