Nayara Energy said on Thursday that its Board of Directors has decided to make an offer to its minority shareholders to buyback 2,59,08,262 shares at ₹731 per share with an objective to provide an exit opportunity.
The decision was taken on Monday.
The equity shares of Nayara Energy were previously listed on BSE and National Stock Exchange of India. The equity shares were voluntarily delisted from both the stock exchanges from February 17, 2016, in accordance with applicable SEBI (Delisting of Equity Shares) Regulations, 2009.
Erstwhile promoter entity acquired equity shares from non-promoter public shareholders during the Delisting process, which was conducted through Reverse Book Building on Stock Exchange platform and subsequently via an Exit Offer for one-year period from February 2016 to February 2017.
However, over 2 lakh retail shareholders, who did not participate in the delisting and subsequent exit offer provided to them, continue to hold shares in the company.
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Since the equity shares of the company are not traded on any of the stock exchanges, the minority shareholders are not able to liquidate or monetise their shareholding and have been frequently approaching the company requesting an exit opportunity be provided to them.
Hence the Board of Directors have decided to make a buyback offer to the minority shareholders. Based on a valuation exercise conducted by an Independent Registered valuer, the offer would be made at a price of ₹731 per share.
The company would shortly be finalising the schedule for the buyback program and issuing the Letter of Offer to its minority shareholders.