Shares of Revathi Equipment were locked in 20 per cent upper circuit limit at Rs 565.65, also its 52-week high, on the BSE in Monday's session after the company's promoters came up with a proposal to voluntarily delist the firm.
The company informed the stock exchanges that it has received a letter dated January 3 from the promoters and promoter group of the company with a proposal to voluntarily delist the equity shares of the company from BSE and National Stock Exchange (NSE) in accordance with the SEBI regulations. READ HERE
Pursuant to the aforesaid letter, the board of directors of Revathi Equipment are scheduled to meet on Thursday, January 7, to consider the proposal for voluntary delisting of equity shares of the company.
The main objective of the delisting proposal is for the promoter and promoter group to obtain full ownership of the company which will, in turn, provide increased operational flexibility to support the company's business and financing needs.
The delisting will also help in cost-saving, and allow the management to dedicate more time to and focus on the company's business on reduction in time and requirement of resources dedicated to listing compliances. The delisting proposal will also provide the public shareholders an opportunity to realise immediate and certain value for their equity shares at a time of elevated market volatility, the promoters said in a letter to the board of directors of the company.
As on January 03, members of the promoter and promoter group, Renaissance Advanced Consultancy (57.68 per cent) and Renaissance Stocks (14.90 per cent) collectively held 2.26 million equity shares, representing 72.58 per cent of the total share capital of the company and the public shareholders held 840,990 equity shares, representing 27.42 per cent of the total share capital.
Revathi Equipment operates in two business segments: construction and mining and power. The construction and mining segment consists of manufacturing and sale of blast hole drills, water well drills, trac drills, batching plant concrete, pump transit mixture and their spares, trading of spares and annual maintenance of the equipment. The power segment is engaged in the generation and sale of power.
Till 12:24 pm, combined 47,000 shares had changed hands on the counter and there were pending buy orders for 41,000 shares on the NSE and BSE.