BF Investment locked in lower circuit after board rejects delisting proposal

Mumbai: Shares of Kalyani Group company BF Investment were locked at the 10% lower circuit of ₹413.65 on Thursday after the company rejected the promoter's proposal to delist the company from Indian bourses, citing non-compliance with Sebi delisting regulations.

The company shares hit 20% upper circuit on Tuesday and Wednesday and gained nearly 57% since December 30 after the company had informed stock exchanges about promoters' intention to consider voluntary delisting.

In an exchange filing on Thursday, the company said the delisting proposal was not approved by the board as one of the members of the promoter group had sold 400 shares of the company on June 29, 2022.

The company further stated that as per regulation 4(2) of the Sebi delisting regulations, no acquirer, including the promoter and members of the promoter group who has sold any equity shares of the company six months prior to the date of the initial public announcement could propose delisting of equity shares of that company.

Firms belonging to the promoters such as DGM Realties, Ajinkya Investment and Sundaram Trading made public announcements to acquire all equity shares held by public shareholders and voluntarily delist the equity shares from the stock exchanges.

BF Investment, a part of the $2.5-billion Kalyani Group from Pune, was formed by demerging the investment business of BF Utilities by way of a composite scheme of arrangement.