Nirma to de-list for flexibility
Detergent manufacturer-turned-retail operator, Ahmedabad based Nirma, has decided to de-list its shares from Bombay Stock Exchange and National Stock Exchange.business Updated: Oct 10, 2010 21:17 IST
Detergent manufacturer-turned-retail operator, Ahmedabad based Nirma, has decided to de-list its shares from Bombay Stock Exchange and National Stock Exchange.
The move is expected to give the management of Nirma, which started with soaps and detergents before diversifying into chemicals, cement, retail and real estate, greater flexibility in operations.
The company said in a statement that it will acquire 3.63 crore of its shares not held by promoters, at an offer price of Rs 235 each, a premium of 19 per cent on the average price for the last 26 weeks.
The Board of Directors gave the nod for the proposal on Saturday.
"The promoters believe the profile of the business of the company is likely to further change towards entering into select early stage and capital intensive businesses and the nature and risk profile of these businesses may not be easily understood by and appropriate for non-promoter investors," the company announcement said.
"Such new businesses may also have long gestation periods which are normally not acceptable to public market investors." the company said in the statement. "Therefore, the company is of the view that the next phase of the company's life cycle can be better managed as an unlisted company."
The promoters hold 77.17 per cent of the paid up equity share capital of the company.
Shares of Nirma closed at Rs 224.5, up 3.6 per cent, on Bombay Stock Exchange on Friday.