Due to the smaller number of shares offered for sale by minority shareholders, Saint-Gobain Sekurit India’s delisting will not be proceeding.
French glassmaker Compagnie de Saint-Gobain SA will not be seeking to delist its Indian-listed unit Saint-Gobain Sekurit India Ltd. as minority shareholders offered to sell fewer shares than the minimum required.
Founders of Indian-listed companies have until 3 June 2013 to either downsize their stake below 75% or seek a delisting of local units to comply with the Indian market regulator’s new rules requiring at least 25% of a listed company to be owned by minority shareholders.
Saint-Gobain Sekurit India’s minority shareholders offered to sell 4.88 million shares – fewer than the minimum required to be tendered in at or below the price of INR 90 a share, offer manager JM Financial Institutional Securities Pvt. Ltd. said.
The price was reached after following a reverse book building process – a procedure required by the Indian market regulator to delist a company and protect the interest of minority shareholders.
According to exchange data, as of 31 March, the French glassmaker controlled 85.8% of Saint-Gobain Sekurit India, mostly through an unlisted local unit – Saint Gobain Glass India, which had sought to acquire 12.97 million shares or 14.23% of the balance paid-up share capital of the listed automotive glass making unit.
Saint Gobain Glass India had fixed an indicative delisting price of INR 31 a share for the offer, which ran between 5 and 11 June.