Leading stock exchange BSE has said two companies will be delisting from 7th July 2020, as trading in their shares has been suspended for more than six months. The exchange has been de-listing firms for the last few years in which trading has long been suspended.
"Two companies that have remained suspended for more than 6 months would be delisted from the platform of the exchange, with effect from July 7, 2020, pursuant to an order of the delisting committee of the exchange," BSE said in a circular. The two companies facing delisting are --Sancia Global Infraprojects Limited and Delma Infrastructure Limited.
The stock exchange for the last few years has been delisting companies in which trading remains discontinued for a long period of time.
Furthermore, for 10 years, these delisted companies, their full-time directors, promoters, and group firms will be deprived of access to the securities market. Promoters of these companies will be required to purchase the public shareholders' shares according to the fair value determined by the exchange 's appointed independent valuer.
"Further, these companies would be moved to the dissemination board of the exchange for 5 years as directed by Sebi," the BSE noted.
Moreover, HDFC Life Insurance share price gained in trade on the report the firm would replace Vedanta on Nifty from 31st July 2020, due to the proposed voluntary delisting of the mining major. The share price of HDFC Life Insurance climbed 5.19% to Rs 576 against the previous close of Rs 547.95 on BSE.
HDFC Life Insurance shares are trading higher than 5 day, 20 day, 50 day, 100 day, and 200-day moving averages. The large-cap share has lost 8.4% since the beginning of this year and gained 14.35% during the last one month. The firm clocked a market cap of Rs 1.16 lakh crore in the morning trade.
Total 2.70 lakh shares changed hands amounting to a turnover of Rs 15.36 crore on BSE.
Last month, Edelweiss Securities said HDFC Life Insurance, SBI Life Insurance Company, Divis Laboratories, and Dabur India could replace Vedanta, Zee Entertainment, Bharti Infratel, and GAIL in Nifty in the next semi-annual review by the NSE.
Leaks emerged on 13th May 2020, that Vedanta Ltd Billionaire Anil Agarwal wants to delist from Indian bourses. A share buyout of Rs 87.5 a piece was offered by the businessman to buy the remaining 49 percent stake from minority investors. The proposed share price was a premium of 9.9 percent over the closing price on 11th May 2020, Vedanta holding company Vedanta Resources Ltd said.
This way, at the current share price, the mining magnate plans to offer around Rs 16,200 crore in cash to take Vedanta Ltd private.
The company said it would delist equity shares from BSE and National Stock Exchange, and if such delisting would be successful, would also seek to delist America Depositary Shares from the New York Stock Exchange and the Securities and Exchange Commission.