In a surprise move, Ahmedabad-based FMCG major Nirma Ltd, which at one time brought some of the top detergent players of the country to their knees, is all set to de-list from the bourses.
The Rs 4,620-core Nirma, pretty much a household name at one time largely because of its popular ad jingle, has lost most of its aggressiveness since then and has also diversified into non-related businesses such as pharma, cement and processed minerals.
The company, through a release issued on Saturday evening, said that the reason behind the move was to attain "flexibility to carry out its operations" and facilitate its foray into new capital intensive businesses. It may be pointed out that Nirma, over a period, has got into some capital intensive businesses like cement and there is a feeling in the company that existing shareholders may be averse to the changed risk profile of the new businesses.
The promoters of the company are expected to come up with an open offer to acquire the balance 3.63 crore equity shares of the company from the public at Rs 235 per share. At this rate, Nirma's promoters will have to shell out Rs 853.66 crore to buy them out.
Read more...
Times of India
The Rs 4,620-core Nirma, pretty much a household name at one time largely because of its popular ad jingle, has lost most of its aggressiveness since then and has also diversified into non-related businesses such as pharma, cement and processed minerals.
The company, through a release issued on Saturday evening, said that the reason behind the move was to attain "flexibility to carry out its operations" and facilitate its foray into new capital intensive businesses. It may be pointed out that Nirma, over a period, has got into some capital intensive businesses like cement and there is a feeling in the company that existing shareholders may be averse to the changed risk profile of the new businesses.
The promoters of the company are expected to come up with an open offer to acquire the balance 3.63 crore equity shares of the company from the public at Rs 235 per share. At this rate, Nirma's promoters will have to shell out Rs 853.66 crore to buy them out.
Read more...
Times of India
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