The promoter of INEOS Styrolution India Limited, namely INEOS Styrolution APAC Pte. Ltd., has decided to reject the discovered price of ₹1,100 share for delisting. The promoter has also determined, pursuant to the book building process, not to make any counter offer to delist its Indian arm.

 

The delisting offer was open between July 17 and July 22.

 

Ineos Styrolution on July 7 had announced that both the exchanges have issued their in-principle approval for the proposed delisting offer of the company at ₹480 a share.

 

The promoter proposed to acquire upto 4.44 million equity shares, representing 25 per cent of the equity share capital of the company, that were held by the public shareholders of the company at price of Rs 480 per share. As of June 2020, the promoter held 75 per cent stake in INEOS Styrolution India. Out of 25 per cent public shareholding, individual shareholders held 13.16 per cent stake, followed by mutual funds (6.07 per cent) and bodies corporate (3.31 per cent), the shareholding pattern data shows.

 

The objective of the delisting offer was to increase ownership in the company, which will provide the promoter with increased operational flexibility to support the company’s business; and given the low liquidity of the equity shares on the stock exchanges, to provide an exit opportunity to the public shareholders of the company.

 

On a standalone basis, Ineos Styrolution reported a net profit of ₹4.45 crore for the March quarter as against a net loss of ₹13.60 crore posted in Q4 of March 2019. Net sales tumbled 25.5 per cent to ₹359 crore (₹482.12 crore). However, for FY19-20, it had posted a loss of ₹9.52 crore and revenues of ₹1.579 crore.

 

Ineos Styrolution is a leading global styrenics supplier with a focus on styrene monomer, polystyrene, ABS standard and styrenic specialties.