Shreyas Shipping stock tanks 10% after board clears delisting of shares; check details

Shares of Shreyas Shipping & Logistics Ltd tanked 10% today after board of the firm announced a floor price of Rs 292 per share for the purpose of delisting of stock from BSE and NSE. The floor price amounts to a discount of 14% to the close of Rs 339.05 in the previous session. This led to weak sentiment around the stock after three days of rally during which it surged 34%.

Shreyas Shipping & Logistics stock plunged 9.88% to Rs 305.55 in trade today.

Earlier, Shreyas Shipping stock opened 4.19% lower at Rs 324.85 on BSE. Shreyas Shipping shares have lost 7.17 per cent in a year and gained 8.73 per cent since the beginning of this year. Market cap of Shreyas Shipping fell to Rs 708.24 crore on BSE. Total 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 1.09 crore. The stock hit a 52-week low of Rs 212.20 on March 27, 2023 and a 52 week high of Rs 413 on August 25 last year.

In terms of technicals, the relative strength index (RSI) of Shreyas Shipping stock stands at 59.9, signaling it's trading neither in the oversold nor in the overbought zone. The stock has a beta of 1, indicating average volatility in a year. Shreyas Shipping shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Siddharth Oberoi, CIO of Prudent Equity said, "Promoters of Shreyas Shipping have made an open offer to buy the remaining shareholders in the company and delist the stock. The floor price has been set at Rs 292 per share. According to the SEBI guidelines, the maximum shares bid at a particular price will determine the final offer. It is to be noted that promoters cannot participate in the bidding. Prudent Equity, which collectively holds a block of about 10% equity stake in the company has advised its clients to bid at Rs 440 per share. The book value for the current financial year is expected to be about Rs 440 per share. We believe that Rs 440 is the fair price for shareholders to bid their shares during the bidding process.”

Promoter of the firm Transworld Holdings Limited had expressed its intent to buy all shares from the public and subsequently delist the shares from BSE and NSE by making the offer.

The company, which is the Indian-flagged vessel owning firm of the 45-year old Transworld Group, is engaged in the domestic multimodal transportation sector

On May 21, the firm said, "It will acquire 64,90,883 fully paid-up equity shares of the Company, having a face value of INR 10/- each, ("Equity Shares") representing 29.56% of the paid-up capital held by the public shareholders of the Company (as defined under the Delisting Regulations and to be referred to as "Public Shareholders") either individually or collectively, as the case may be."

The resolution was passed in a board meeting on Wednesday.