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Informist, Wednesday, Jun. 18, 2025

--SEBI approves special measures for voluntary delisting of select PSUs 

NEW DELHI – The Securities and Exchange Board of India's board Wednesday introduced special measures for voluntary delisting of select state-run companies through a fixed-price delisting process. In these public-sector undertakings, the shareholding of the central government as a promoter should exceed 90%, SEBI said in a press release. Eligible companies will not need the approval of two-thirds of their public shareholders to delist.

These public-sector undertakings include companies other than banks, non-banking finance companies, and insurance companies. SEBI had proposed last month to carve out an exception for volunatry delisting of these state-run companies, noting that certain companies have a thin public float or poor financials. These companies may not have any future due to outdated product lines or a government decision to sell off their assets, SEBI had said in its consultation paper on the matter.

"In certain Public Sector Undertakings (PSUs) with minimal public float, the shares are traded frequently at prices which are not commensurate with operations, net worth, profitability, and other financial parameters of the company," SEBI said Wednesday. "If such PSUs are to undertake delisting, the current norm of 60 days' volume weighted average market price makes it financially burdensome to delist such companies," the regulator added. 

Such companies would now be eligible to delist under the relaxed route. Delisting of eligible companies will be through a fixed-price delisting process that would be at a premium of at least 15% over the floor price, SEBI said.

Under the relaxed route, the floor price would be the highest of the following three scenarios: volume weighted average price paid or payable by an acquirer in the 52 weeks before the reference date, highest price paid by an acquirer during the 26 weeks before the reference date, and the price determined by a joint valuation report obtained by two independent registered valuers.  End

Reported by Anand JC

Edited by Rajeev Pai

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