Shreyas Shipping & Logistics, a prominent shipping company, is considering the delisting of its shares from the stock exchanges. The decision comes as the promoter of the company, Ramesh S Ramakrishnan, and his family, who collectively hold a 70% stake in Shreyas, aim to reduce costs and alleviate reporting requirements. With a current market capitalization of Rs 572 crore, Shreyas has disclosed its promoter company, Transworld Holdings, plans to acquire all the equity shares held by public shareholders, subsequently leading to the voluntary delisting of the stock from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
In a regulatory filing, Shreyas announced the appointment of N L Bhatia & Associates to conduct the necessary due diligence for the proposed delisting transaction. As of the latest trading session, Shreyas’ shares closed at approximately Rs 261 per share on the BSE. The actual delisting price will be determined through a process known as reverse book building. Transworld Holdings retains the right to accept or reject the discovered price, or alternatively, make a counter offer. Shreyas’ board is scheduled to convene on May 24th to evaluate the delisting proposal.
The delisting move, subject to approval by the shareholders through a special resolution, would grant the Ramakrishnan family complete ownership of Shreyas, thereby providing them with enhanced operational flexibility. Moreover, the delisting process would help reduce compliance costs, such as annual listing fees, fees payable to share transfer agents, expenses related to servicing shareholders, and the management’s time spent on complying with the listing requirements set by the Securities and Exchange Board of India (SEBI).
According to regulations, a stock can only be delisted from the stock exchanges if the promoters’ holding in the target company reaches a minimum of 90%. By delisting Shreyas, the Ramakrishnan family aims to streamline operations, optimize costs, and eliminate the regulatory burdens associated with being a listed entity. The delisting proposal aligns with their strategic vision for the company’s future growth and development.
It is important to note that the delisting plan is still subject to approval from the shareholders, who will play a crucial role in determining the outcome of the proposal. If the delisting is successful, Shreyas Shipping & Logistics will transition into a privately held company, enabling the Ramakrishnan family to exert full control over its operations. The delisting process is expected to bring about significant changes for Shreyas, allowing the company to navigate its future with more autonomy and flexibility.
To facilitate the delisting transaction, Shreyas has appointed N L Bhatia & Associates to conduct the necessary due diligence. The delisting price will be determined through a process called reverse book building. Transworld Holdings can accept or reject the discovered price or make a counter offer. The board of Shreyas is scheduled to convene on May 24th to evaluate the delisting proposal.
For the delisting to occur, it requires approval from the shareholders through a special resolution. This would grant the Ramakrishnan family complete ownership of Shreyas and provide them with operational flexibility. Delisting would also help reduce compliance costs associated with being a listed company, such as annual listing fees and expenses related to servicing shareholders.
Delisting requires the promoters’ holding to reach a minimum of 90% in the target company, as per regulations. The delisting proposal aligns with the Ramakrishnan family’s strategic vision for Shreyas’ future growth. It’s important to note that the delisting plan is subject to shareholder approval, which will determine the outcome of the proposal. If successful, Shreyas Shipping & Logistics will become a privately held company, giving the Ramakrishnan family full control over operations and more autonomy.
Disclaimer: This article is for informational purposes only and should not be construed as financial or investment advice. Readers are advised to conduct their own research and consult with relevant professionals before making any financial decisions.
