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Ricoh Fails To Delist From India’s Stock Market
(Speculators, who entered…)MUMBAI: Japanese-multinational Ricoh’s buyback offer to delist its Indian arm has failed, shows BSE data. Speculators, who entered the India-listed counter on BSE to make a quick buck, are now stranded, with the share hitting a lower circuit for want of any takers.
The acquirer could manage to garner bids for only around 40 lakh shares, or around 62% of the required quantity to successfully delist the shares, data on BSE’s website showed.
A company in India can be delisted if a buyback offer results in the promoter holding exceeding 90%, or the promoter acquiring at least 50% of the public holding, whichever is higher.
The price is determined by investors in what is called reverse book building where they indicate prices at which they are willing to sell.
Of the 40 lakh shares tendered, a maximum of 19 lakh shares were tendered at Rs 130 while around 11 lakh shares were tendered at Rs 108, according to BSE’s website at 6 pm on Friday. The quantity was less than the required quantity of around 65 lakh shares for the delisting offer to be successful.
Ricoh appears to be the second victim of the delisting mania that boosted shares of several multinationals in a weak market. In June, French-multinational Saint Gobain’s plan to delist failed as it did not get the required number of shares to delist its Indian arm.
Since early 2012, the Ricoh stock has been on an upswing, rising around four-fold to touch a peak of Rs 92 on October 29 despite weak market sentiment and its having posted losses in two out of the past four quarters.
After touching an all-time high a few days ago, the stock has been on a downward journey as investors sensed that delisting the stock may not be a very easy task.
On Friday, it closed at Rs 64, locked in a lower circuit of 5% from its previous close, with investors holding over 2 lakh shares on the block for sale on BSE. The acquirer had offered a floor price of Rs 53.79 a share.
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