The company who wishes to get itself delisted from all the Stock Exchanges where the company is listed as per the provisions of Chapter IV of the SEBI (Delisting of Equity Shares) Regulations, 2009, the Promoters of the company has to provide an Exit opportunity to all the public shareholders of the company at a price to be determined as per the Regulation 15 of the Regulations, the provisions of which are detailed below:
As per regulation 15 (2) of the SEBI (Delisting of Equity Shares) Regulations, 2009, the offer price shall be the highest of –
- Average of the weekly high and low of the closing prices during the past 26 weeks.
- Average of the weekly high and low of the closing prices during the past 2 weeks .
Further, where the shares of the Company are infrequently traded in all the Stock Exchanges, then the provisions of Regulation 15 (3) has to be complied with and Floor price shall be determined taking into account the highest of the following criteria’s:-
- Price paid by the promoter for any kind of allotment during the past 26 weeks and upto the date of Public Announcement.
- Networth, Book Value, Earning per share, price earning multiple vis a vis industry average of the company.
Further, where the shares of the Company are Frequently traded in some Stock Exchanges and Infrequently traded in other Stock Exchanges, the highest of all the aforesaid criteria’s be considered.
Before, taking into consideration the complexities involved in the calculation of floor price as detailed above, we have developed this calculator which helps you to calculate the floor Price payable under the SEBI (Delisting of Equity Shares) Regulations, 2009 on click of mouse by just filling the necessary information irrespective of the fact that shares of the Company are listed on the stock exchange having nationwide terminals i.e BSE or NSE or on any other stock exchange or whether the shares are frequently traded or infrequently traded... Close