Ricoh India sinks as delisting fails

Ricoh India shares have sunk today also. The stock had hit the 20% lower circuit yesterday and today too, it fell 20% the moment it opened for trading. It remains frozen at the lower circuit at Rs.138.25.

The reason for this one-way southward journey is its failed delisting offer. The company yesterday announced that the acquirer, the Japanese parent, Ricoh Asia Pacific Pte Ltd, rejected the offer. It managed to get bids for 69.42 lakh shares of which 41.80 lakh shares were tendered at or below the discovered price of Rs.200/share. The acquirer rejected the price of Rs.225/share, where the total number of shares to be acquired for successful delisting offer was tendered.

This is the second failed attempt of the promoters to delist – earlier in 2012, the company could not delist for the very same reason – its discovered price of Rs.53.79 attracted much lower bids.