Promoters of LKP Finance Ltd propose delisting of company's shares

LKP Finance Ltd has received a letter dated December 01, 2020 from Mr. Mahendra V. Doshi (hereinafter referred collectively as the "Promoters") of the Company. In the letter, the Promoters have expressed their intention to acquire all fully paid-up equity shares of the Company ("Equity Shares") i.e. 45,72,311 equity shares of Rs. 10/- each that are held by the public shareholders of the Company (as defined under the Delisting Regulations, to be referred to as "Public Shareholders") and consequently voluntarily delist the Equity Shares from BSE Limited ("BSE"), in accordance with the Delisting Regulations ("Delisting Proposal").

As on September 30, 2020, the Promoters held 79,96,312 equity shares aggregating to 63.62% of the issued and paid-up equity share capital of the Company and, the Public Shareholders held 45,72,311 equity shares representing 36.38% of the issued and paid-up equity share capital of the Company.

The Promoters have stated that any acquisition of equity shares from the public shareholders shall be in accordance with the Delisting Regulations and shall be subject to receipt of all the regulatory approvals and the terms and conditions, as may be stated in the Public Announcement or the Delisting Letter of Offer proposed to be sent to the public shareholders of the Company.

Pursuant to the aforesaid letter, the Promoters have requested the Board of Directors of the Company to:

a) Convene a meeting of the Board of Directors of the Company to consider and approve the Delisting Proposal, as required under the Delisting Regulations;

b) Seek the approval of the shareholders of the Company by way of a special resolution through postal ballot and the approval of the Stock Exchanges and/ or other regulatory authorities;

c) Undertake all such other actions as may be required to be undertaken by the Company under the Delisting Regulations to give effect to the Delisting Proposal.

A meeting of the Board of Directors of the Company is scheduled to be held on Friday, December 04, 2020 in order to consider and take on record the above proposal received from Promoters of the Company expressing their intention to purchase the equity shares held by the public shareholders and voluntarily delist equity shares of the Company from BSE Limited & commencing the process for delisting.

The board will appoint Merchant Banker registered with Securities and Exchange Board of India to carry out due diligence and make disclosures in accordance with Delisting Regulations and to take all such other actions as may be required to be undertaken by the Company under the Delisting Regulations to give effect to the Delisting Proposal.

Shares of LKP Finance Limited was last trading in BSE at Rs.62 as compared to the previous close of Rs. 61.95. The total number of shares traded during the day was 855 in over 6 trades.

The stock hit an intraday high of Rs. 63.9 and intraday low of 62. The net turnover during the day was Rs. 53019.

Source : Equity Bulls

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