De-Listing

A company may consider de-listing when low market liquidity, limited public float, compliance costs, or strategic restructuring objectives make continued listing inefficient or misaligned with long-term goals.

De-listing may be undertaken through the Reverse Book Building mechanism or fixed price process, subject to eligibility and compliance with SEBI (Delisting of Equity Shares) Regulations.

Reverse Book Building is a price discovery mechanism where public shareholders tender shares at their desired exit price, enabling transparent determination of the final de-listing price.

The exit price is determined based on bids received during the RBB process or through valuation methodologies prescribed by SEBI, ensuring fairness and regulatory compliance.

The Merchant Banker manages regulatory compliance, coordinates with intermediaries, oversees price discovery, and ensures the de-listing process is executed transparently and efficiently.

De-listing requires board approval, shareholder consent through special resolution, and in-principle approval from stock exchanges, subject to regulatory conditions.

Post de-listing, the company must complete settlement with shareholders, obtain final exchange approvals, and comply with post-offer disclosures and regulatory obligations.