Indian Binani Cements May Delist - Background Report - Oct, 2010

2 Pages Posted: 29 Jan 2011

Date Written: October 7, 2010

Abstract

Binani Industries has made the announcement regarding their intention of acquiring the entire public shareholding of Binani Cement and to delist Binani Cement. At the current market price level of Binani Cement, the delisting offer size works out to in the range of about Rs 600 Crores.

In this context, its critical to see the shareholding pattern of Binani Cement, to assess the eventual outcome of delisting process through Reverse Book-Building process.

Currently, the shareholding breakup of Binani Cement reads as follows: (a) Promoter Binani Industries owns 69.90%, (b) JP Morgan owns 11.59%, (c) Credit Suissee combinedly owns 10.87% through their investment arms Ganesh Prime & Credit Suissee Limestone, and (d) others own 7.64%.

If the delisting is to be successful, the promoter has to reach the stake of 90%. That means, Binani Industries should be able to take up their stake from 69.90% to 90% for the delisting to be successful. That is, an addition of 20.1% stake is required.

Keywords: India, Indian financial markets, delisting, Binani cement, Binani industries, JP Morgan, Credit Suisse, Ganesh Prime

Suggested Citation

Thunuguntla, Jagannadham, Indian Binani Cements May Delist - Background Report - Oct, 2010 (October 7, 2010). Available at SSRN: https://ssrn.com/abstract=1750784 or http://dx.doi.org/10.2139/ssrn.1750784

Jagannadham Thunuguntla (Contact Author)

affiliation not provided to SSRN ( email )

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