Fulford delisting hangs on fire

On account of a procedural lapse, the delisting offer of Fulford, which began on 3rd June and ended on 9th June currently hangs in a shroud of uncertainty as the holding company of Fulford, Dashtag, failed to send the acknowledgment for the delivery of the open offer letter to a few shareholders.

As per the delisting rule, 25% participation of the demat shareholders need to participate; only then is the issue termed as successful. And if this does not happen, the promoter/acquirer needs to prove it to the stock exchanges that they had delivered the open offer letter, wit through speed post or through registered post to all the public shareholders.

In case of Fulford, out of the offer of 9.77 lakh equity shares, 6.46 lakh shares were tendered at an average price of Rs.2263 v/s floor price of Rs.701.71/share. Dashtag meanwhile failed to submit the delivery acknowledgment for 69 out of the 3841 minority shareholders. BSE immediately pulled it up and asked the company to file an appeal with the Securities Appellate Tribunal (SAT) and that in tunr turned this over to SEBI, seeking exemption in this case. SAT has asked SEBI to pass the order within two weeks. So till SEBI clears this, the open offer currently hangs on fire.

The stock price has taken a hit due to this development. After having slumped 5% at one time during the day to hit an intra day low of Rs.2130, the stock price has recouped a bit and is now at Rs.2223, down around 1.5%.