Andhra Cement likely to be delisted
By Our Corporate Bureau | 07 Feb 2002
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Kolkata: Andhra Cement is likely to be delisted from the bourses, as the public shareholding has fallen below the SEBI-prescribed minimum level of 10 per cent.
While the minority shareholders held only 4.2 per cent of the company's stake as on 31 December 2001, the combined stake of the promoters stood at 93.45 per cent. The balance was held by mutual funds and the Unit Trust of India, banks, private corporate bodies and non-resident Indians, along with overseas corporate bodies.
The management has already informed stock exchanges that public shareholding had gone down to as low as 4.2 per cent. The company is listed on the Mumbai, Hyderabad and Delhi stock exchanges after delisting itself from the Calcutta, Bangalore and Madras bourses a couple of years back.
SEBI has put a floor level of 10 per cent shareholding by public for a listed company. The regulations also allow promoters six months to conform to the norms in case the public shareholding falls short of the mandatory requirement. If Andhra Cement gets delisted from the bourses, it will have to offer an exit option to existing shareholders at a predetermined rate.
The Rs 10 paid-up equity of the company has been hovering around Rs 5. In fact, there is little trading on the counter. The company has submitted a revised rehabilitation scheme to the Board for Industrial and Financial Reconstruction. The scheme includes sale of unproductive/surplus assets and induction of additional funds.
While the minority shareholders held only 4.2 per cent of the company's stake as on 31 December 2001, the combined stake of the promoters stood at 93.45 per cent. The balance was held by mutual funds and the Unit Trust of India, banks, private corporate bodies and non-resident Indians, along with overseas corporate bodies.
The management has already informed stock exchanges that public shareholding had gone down to as low as 4.2 per cent. The company is listed on the Mumbai, Hyderabad and Delhi stock exchanges after delisting itself from the Calcutta, Bangalore and Madras bourses a couple of years back.
SEBI has put a floor level of 10 per cent shareholding by public for a listed company. The regulations also allow promoters six months to conform to the norms in case the public shareholding falls short of the mandatory requirement. If Andhra Cement gets delisted from the bourses, it will have to offer an exit option to existing shareholders at a predetermined rate.
The Rs 10 paid-up equity of the company has been hovering around Rs 5. In fact, there is little trading on the counter. The company has submitted a revised rehabilitation scheme to the Board for Industrial and Financial Reconstruction. The scheme includes sale of unproductive/surplus assets and induction of additional funds.
