Nirma: board decides de-listing

On 10 October 2010, the board of directors of Nirma Ltd. approved the proposal made by chairman Karsanbhai Patel and other promoters to acquire INR 3.63 crore equity shares of the company. The board a…

On 10 October 2010, the board of directors of Nirma Ltd. approved the proposal made by chairman Karsanbhai Patel and other promoters to acquire INR 3.63 crore equity shares of the company. The board also approved to seek delisting of equity shares from the Stock Exchanges pursuant to and in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations). Nirma“s equity shares are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. Total income and gross fixed assets of the company for the financial year ended on 31 March 2010, on a consolidated basis, were INR 4,696 crore and INR 5,032 crore, respectively, while share capital and reserves of the company, as of 31 March 2010, were INR 79.57 crore and INR 2,746 crore respectively. Promoters hold 77.17% of the paid up equity share capital of the company. The price of INR 235 per share, considered by the acquirers as attractive for the public shareholders of the company under the present circumstances, represents a premium of approximately 19% to the price determined as the average of the weekly high and low of the closing prices of the equity shares of the company as quoted on the NSE, during the 26 weeks prior to the date of the decision. With USD 1 billion revenue, today Nirma is the seventh largest soda-ash maker in the world, with nine manufacturing locations of the company serving four continents and 37% of total income generated overseas.