BF Investment shares plunge 10% today after rallying 76% in 8 days. Here's why

Shares of BF Investment hit a 10 per cent lower circuit limit at Rs 413.65 after rising for eight straight sessions after the company board said it could not go ahead with its delisting proposal. As a matter of abundant caution and good governance, the delisting proposal was not approved by the board to ensure compliance with Regulation 4(2) of the Delisting Regulations, the company said in a BSE filing.

The scrip had risen 76 per cent in the previous eight sessions.

BF Investment said post the due diligence report issued and submitted by SVD & Associates, a peer review company secretary, the company board noted that prior to issuance of the initial public announcement, the beneficiary position data (BENPOS) of the company reflect that one of the members of the promoter and promoter group of the Company had sold 400 equity shares of the company on  June 29.

As per Regulation 4(2) of the Delisting Regulations, no acquirer --  which includes the promoter and member(s) of the promoter group -- who has sold any equity share(s) of the company during the period of six months, prior to the date of the initial public announcement, can propose delisting of equity shares of that company.

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.

"In view of the above and as a matter of abundant caution and good governance, the Delisting Proposal was not approved by the Board to ensure compliance with Regulation 4(2) of the De listing Regulations," it said.

BF Investment is a part of $2.5 billion Kalyani Group from Pune. It was formed by demerging investment business of BF Utilities by way of a Composite Scheme of Arrangement. Under the said business restructuring, Investment Business has been transferred to BF.

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