Financial Daily from THE HINDU group of publications
Saturday, Jan 19, 2002
Financial Daily from THE HINDU group of publications Saturday, Jan 19, 2002 |
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Markets
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Investment Banking Corporate - Buyback DSP Merrill to buy back at Rs 250 Our Bureau
MUMBAI, Jan. 18 LEADING investment banker, DSP Merrill Lynch Ltd, has decided to buyback the 2.51-per cent shares held by the public, at a maximum price of Rs 250 per share. The company also decided to delist itself from the Bombay Stock Exchange. These decisions came at a board meeting held here today. It would be seeking shareholders' approval for the delisting, the company said in a notice to the stock exchange. Mr Shitin Desai, Vice-Chairman and Managing Director, DSP Merrill Lynch, said ``There is very limited trading in the company's stock; there is a lack of liquidity. Buyback would offer our minority shareholders an exit option.'' According to Mr Desai, the company's decision to delist is prompted by the recent SEBI ruling wherein minimum requirement for ongoing listing is 10 per cent of floating stock. ``In our case, it is less than 10 per cent. And as we are not looking to raise fresh funds and the sponsors are not interested in divesting stake, the only option is buyback,'' Mr Desai explained. The buyback option will be subject to the requisite shareholders' and statutory approvals.
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