ECE Inds slumps after the rise

ECE Industries had breached the upper circuit yesterday at Rs.167.75 with volumes of over 8 times – this was in anticipation of the Board meeting scheduled during the day for delisting the stock from the bourses. The market had expected complete delisting and stock price had risen in that hope. But today, the stock is deep in the red, down over 5% at Rs.138.70, with an intra day low at Rs.135.30.

This sudden turnaround in the mood is because, in the Board meeting which was to “consider the Delisting of Equity Shares from the Stock Exchange under Clause 6 & 7 of the SEBI (Delisting of Equity Shares) Regulations. 2009’; the Board has decided that it may consider to voluntary delist the shares of the company from any one of the recognized Stock Exchange i.e. either NSE or BSE. The shares of Company will continue to remain listed on another Stock Exchange having nation-wide trading terminals and the shareholders of the Company will continue to avail the benefits of listing without giving any exit opportunity to them.

The company has stated that it had to take this ‘partial’ delisting route after observing the steep rise in the prices of shares of the Company after displaying the above referred Notice of Board Meeting on the website of the Stock Exchanges.