BF Investment shares fell over 9 per cent in Friday's trade, taking their losing run to the second straight session amid disappointment over the company board decision to disapprove a proposal of voluntary delisting of shares. The scrip fell 9.35 per cent to hit a low of Rs 375 on BSE. This is in addition to a 10 per cent fall in the previous session. The scrip had risen 76 per cent in the preceding eight sessions.
The BF Investment board took the decision after due diligence report issued and submitted by SVD & Associates, a peer review company secretary, which suggested that one of the members of the promoter and promoter group of the company sold 400 shares of the company on June 29, prior to issuance of the initial public announcement.
This was against the Regulation 4(2) of the Delisting Regulations, which requires no acquirer, including the promoter and members of the promoter group, can sell any equity share of the company during the period of six months prior to the date of the initial public announcement.
BF Investment said post the issuance of the initial public announcement and as part of the due diligence exercise, the details of buying, selling and dealing in the equity shares of the company by acquirer, promoter, promoter group and the top 25 public shareholders were sought by the company from the stock exchanges.
Only on comparing the BENPOS and the data, it came to attention that the aforesaid sale by the member of the promoter and promoter group of the company occurred on June 30, BF Investment said.
As a matter of abundant caution and good governance, the company disapproved the delisting proposal, resulting in the stock paring some of the recent gains.
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