Claris Lifescience Delisting

As of now total shares tendered is 1.84 Cr, which is near to 85% of what is required for the process to get approved. Let see if the remaining 35 lakh shares get tendered before end of today!
Source: https://www.bseindia.com/markets/publicIssues/BSEBidDetails_ACQ.aspx?flag=ec&Scripcode=3620

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Thanks for that info. Can someone participate in this offer now upon purchasing the shares in open market?

You will not be able to participate in the price discovery as your shares will get credited after 20th, which is the last day for submitting bids. However, you will be able to tender your shares at the delisting pricing/discovered price, subsequent to the announcement of price. The promoters are required to accept all shares upto 1 yr from the delisting date at the delisting price.

Regards
SJ

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Thanks for the table, puts things in perspective. One wishes data told if the delisted company had an underlying flourishing business left in it or was it just a shell with cash in it. The premium should be decided by future and present cashflows. In this case we just have cash with negative future cashflows.

If everyone gets the same EXIT PRICE (right?) then it makes sense to use a lower offer price since anyone selling higher than exit does not get to participate in delisting. Secondly, the guys with the big size (institutions etc) will drive the DISCOVERED price. Worst outcome is setting a high price and not getting the exit price since this company is basically an all-cash-no-underlying-business company. The longer you wait the more cash it burns. I think (purely my guess), that unless the promoters are desperate (sometimes sounds like it since they mention using the delisted company to possibly become a venture capital firm) they wont have any incentive to pay up too high a price. Reaching a 90% overall acceptance means (Promoter currently at 50% holding) they need to get 40% more or 40 out of 50 of public shareholding => about 80% public shareholders to submit. This looks feasible for now unless people forget to participate in delisting. The participation in ‘vote for delisting’ was very high as it says in the letter of offer. The premium to INDICATIVE PRICE = 381 should not be too high in this case. Low 400’s?

Hi,

I am new to equity market. I have one question regarding this delisting.
What happened when my bid price is higher then discovery price?

The latest numbers available in BSE shows that the required number of shares are tendered at a price of Rs. 400. Hands down to management for pulling this off, considering the cash available(after transaction cost and taxes) on sale of the business should have been in the range of Rs. 550 per share. Anyways the way this deal was planned and pulled off will definitely be a case study for many investors and market watchers in the days ahead!

I think your information is wrong, cash available post bonus of 300 cr which management announced for itself in the most duboius way, post taxes and post transaction fee and post payment of the contingent liability amount to the buyer is around 381/share and add some more to it due to interim interest. So this figure of 550/share is not correct. Now that the delisting is going to happen at 397-400 per share so management is paying up fairly. The unfair things was to a) stupidity in terms of transaction structure wherein they should have tried to force Baxter to buy shares from the exchange route and announce a open offer - although Baxter would have not gone ahead with the deal in all likelihood so cant blame management so much on this point, b)incredulously high transaction fee running into almost 150 cr plus, c) the most wrong thing was the 300 cr bonus that the management announced for itself.

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Thanks Sarvesh! I did not dispute managements disclosure on the cash balance to the exchanges. My only contention was that in an ideal scenario the cash balance should have been about 550 per share(this is not an information but just a contention). Anyways the verdict is now out and the delisting is going to be a reality(unless something goes drastically wrong in the days ahead!).

Hope this thread helped in creating awareness among the investor community and make a well reasoned decision.

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Promoters have made a public announcement on the exit price today and the same is fixed at Rs.400. Share holders who have not tendered/ offered shares at a price above the exit price have a period of one year to tender the shares.

Announcement - Claris.pdf (158.2 KB)

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Many thanks AJ for initiating this thread and updating . This would have helped many people like me who participated first time in tendering shares while de-listing. Zerodha charging Rs.20 for share tendering order. The customer cannot tender shares online. Customer need to scan the Bid form and email to Zerodha. How is the process with other brokerage houses ?

Im not really qualified to answer your questions as my experience with brokers is very limited. Rs.20 for this order sounds reasonable.

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Hope everyone got the cash by 22nd Feb. Chapter closed, 6% returns in ~5 months… Lousy :slight_smile: but beats the FD :stuck_out_tongue:

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