Shreyas Shipping & Logistics Delisting: Promoters raise indicative price to ₹375 per share

Shreyas Shipping & Logistics (SSL) on Monday announced that its promoter has revised upwards the indicative price for share delisting.

The company’s promoter Transworld Holdings Ltd (THL) has provided its intention to acquire shares of SSL from investors at a revised indicative price of ₹375 apiece, SSL said in a release.

Transworld Holdings had received in-principle approval for the proposed delisting of SSL from Indian stock market exchanges BSE and NSE on September 7. 

The proposed delisting was approved by the board of directors on May 24, 2023, and by shareholders of Shreyas Shipping & Logistics vide special resolution on July 03, 2023.

Earlier, the company had said that the floor price for the delisting of shares, as per regulations, was determined at ₹292 per share, while Transworld Holdings had provided its intention to acquire shares of Shreyas Shipping & Logistics at an indicative price of ₹338 apiece.

Read here: Shreyas Shipping & Logistics receives BSE, NSE nod to delist shares; indicative price at ₹338 per share

The promoters have now revised the indicative price to ₹375 per share, which is 2.7% higher than Friday’s closing price. However, the revised price is still lower than Monday’s high of ₹391.05 apiece.

“Transworld Group continues its efforts to simplify the group structure. This proposed transaction is fully aligned with the robust strategy pursued over the years. It will transform the Group's credit profile while offering a fair exit price to minority shareholders. Provided it can be completed at a price that balances the needs of all stakeholders, it has the potential to fundamentally reposition our business for the future,” said Sivaswamy Ramakrishnan, Chairman of the Transworld Group.

NovaaOne Capital Pvt. Ltd. is acting as the manager to the offer to THL on the delisting process. JSA Advocates & Solicitors are acting as legal advisors in connection with the Offer.

Under applicable Indian laws, SSL can be delisted by acquisition of equity shares of SSL if the same would result in post-offer shareholding of THL and its affiliates in SSL being at least 90.0% of the total equity shares issued by SSL and satisfaction of certain other applicable regulatory conditions.

Currently, THL along with its affiliates holds around 1.55 crore equity shares aggregating to 70.44% of the paid-up equity share capital of SSL.

The proposed delisting is now subject to satisfaction of the Minimum Tender Condition, and other regulatory approvals. If consummated, the purchase of the equity shares of SSL will be carried out in accordance with the Delisting Regulations at a price to be determined through the reverse book building process, the company said. 

Shreyas Shipping & Logistics share price has gained 15% in the last one month, while the stock is up more than 28% YTD.

At 2:25 pm, Shreyas Shipping & Logistics shares were trading 4.64% higher at ₹382.05 apiece on the BSE.

Catch Live Market Updates here