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Our Bureau

Kolkata, Aug. 12

The Elantas Beck stock, on Wednesday, hit the 10 per cent upper circuit at Rs 397.80 on the BSE.

In the past one week, the stock has spurted 57 per cent and in the one month period it has gained close to 89.5 per cent.

According to market observers, the recent price movement gives an indication that the minority shareholders are expecting a higher exit price than the current prices in response to the overseas promoter’s desire to delist the company. The overseas promoter wants to purchase the 11.45 per cent publicly held equity shares of the company and asked the board of directors to take action related to the delisting proposal under the SEBI regulations. The board of Elantas Beck on August 10 approved the delisting proposal through which Elantas GmbH would buy a total of 9,07,366 equity shares.

Elantas GmbH (formerly Altana Electrical Insulation GmbH) holds 7,020,316 equity shares representing 88.55 per cent of the paid-up equity share capital of the company. The board has also decided to seek the consent of the shareholders of the company for the delisting proposal by way of postal ballot. A positive verdict through the postal ballot will only enable the overseas parent to go in for a share purchase offer through a book-building process.

Incidentally, the company had sought shareholders’ approval in July through postal ballot for relocation of its registered office from Mumbai to Pune. Under the current regulation, the discovered price for exit of minority public holding would be decided by the maximum bid price constituting 50 per cent of the number of shares required for delisting. ICICI Prudential Emerging Star is holding 2.82 per cent and rest of the public holding are dispersed with each less than one per cent of the paid-up capital.

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