Jindal Photo approves delisting proposal, sets floor price at ₹1,119.50 per share

Jindal Photo Ltd on Thursday (July 16) said its board has approved a proposal to voluntarily delist the company’s equity shares, subject to approval from shareholders in accordance with the Securities and Exchange Board of India (SEBI) Delisting Regulations.

The company said the floor price for the delisting offer has been fixed at ₹1,119.50 per equity share, while the indicative price has been set at ₹1,120 per share. The prices were determined in accordance with Regulation 19A of the SEBI Delisting Regulations, based on the valuation report issued by ICON Valuation LLP.

The board, after considering the due diligence report and other available information, approved the delisting proposal, subject to shareholder approval.

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The company also certified that it is in compliance with applicable securities laws and that the acquirers, along with the persons acting in concert and related entities, are compliant with applicable securities regulations.

Jindal Photo said the board has certified that the proposed delisting is in the interest of public shareholders.

The company has appointed MUFG Intime Private Limited, its Registrar and Transfer Agent, to provide e-voting services and related activities for the postal ballot process.

What is delisting?

It refers to the permanent removal of a company's shares from a recognised stock exchange (such as the NSE or BSE), meaning they can no longer be traded publicly. It is strictly governed by the Securities and Exchange Board of India (SEBI) to protect public shareholders.

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Voluntary Delisting

When a company’s promoters decide on their own to remove the shares from the stock exchange. This often happens when a company wants to become privately owned, restructure its business, or eliminate the ongoing costs and compliance burdens of being a public entity.

What happens to your shares?

If you hold shares in a company that is being delisted, you can sell them back to the promoters during the exit offer window. If you choose not to sell or miss the window, your shares do not disappear; however, they become highly illiquid. You will no longer be able to sell them through the standard exchange, making it difficult to recover your investment.

Shares of Jindal Photo Ltd ended at ₹1,130.45, down by ₹28.30, or 2.44%, on the BSE.