Home / Companies / Promoters plan delisting of Piramal Glass

Mumbai: Promoters of Piramal group plan to delist Piramal Glass Ltd. from BSE and the National Stock Exchange (NSE) and buy the shares held by the public, the company announced on Friday.

Public shareholders will be offered Rs100 for a share as against the stock’s current trading price of about Rs77 a share, it said.

The promoters will buy back the shares through PEL Management Services Pvt. Ltd, in which Ajay Piramal is a partner.

“We have received a proposal dated 7 February 2014 from Sri Hari Trust acting through its corporate trustee—PEL Management Sevices Pvt Ltd (proposed acquirer), to acquire the fully paid-up equity shares of Piramal Glass held by public shareholders in accordance and compliance with Sebi (Securities and Exchange Board of India)," the company announced.

Piramal Glass manufactures glass bottles for various purposes like perfumes, pharmaceuticals and beverages.

As of December, the promoters held a 74.16% stake in Piramal Glass. Under Sebi norms, promoters of a listed company can hold only up to a 75% stake in it, which gives little headroom for capital infusion in Piramal Glass by its promoters.

“As per the delisting proposal, the objective of the proposed acquirer in making the delisting offer is to give flexibility to the promoter group to provide the desired financial support to the company including modifying the existing capital structure, infusing additional capital and adequately supporting the company’s strategic growth initiatives," the company said in a statement.

Capital infusion is necessary to improve the liquidity and the performance of the company, it added.

Piramal Glass’ board of directors will discuss the delisting proposal in a meeting on 10 February.

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