Man Industries, a steel pipe manufacturer, said on Monday its global depository receipts (GDRs) have been delisted from the Nasdaq Dubai Stock Exchange. In a release to the stock exchanges, it said all the outstanding GDRs had been converted.
The company had issued 6.73 million GDRs in 2006 for $5.20 apiece.
In April 2012, Bank of New York Mellon (BNY Mellon) had intimated the company they did not want to continue as the depository to the GDRs issued by the company. BNY Mellon is the depository of many of the GDRs and American Depository Receipts (ADRs) issued by the company. This year, in late November, Dubai Financial Services Authorities (DFSA) had suspended trading of the company’s GDRs from its official list.
When contacted, Man Industries Chairman, R C Mansukhani said BNY Mellon wanted to opt out, as there were questions regarding the ownership of the GDR. “There were questions raised as to who owns the GDRs. There were some complains received with this regard as well,” explained Mansukhani.
He said the company had tried to rope in another depository, but in vain.
In September, BNY Mellon, informed the GDR holders they were stepping down as the depository and the holders, if they wish to convert their units before November 30.
One of the GDR holders, Orange Mauritius Investments, converted its GDRs and now holds 7.46 per cent in the company.
Shares of Man Industries closed down 0.11 per cent on Tuesday on the BSE at Rs 132.3.
