HSBC aims to delist Investsmart shares from the Bombay Stock Exchange and the National Stock Exchange of India, along with its plan to acquire the 6.14 percent of Investsmart shares currently owned by its minority shareholders.
The delisting offer is in accordance with the Securities Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (SEBI Regulations) and is conditional upon the approval of the Investsmart Board of Directors, its shareholders and the stock exchanges where the shares are listed.
Through a reverse book building process as prescribed under the SEBI Regulations, the delisting offer price will be determined allowing shareholders to tender their shares at their preferred price. However, a floor price determined as per the SEBI Regulations will be implemented. The final price is determined as the price at which the maximum number of shares is tendered, subject to the purchaser’s acceptance or rejection.
Through its subsidiaries HSBC Securities and Capital Markets (India) Private Limited and HSBC Violet Investments (Mauritius) Limited, HSBC acquired 93.86 percent of Investsmart in 2008 for a total consideration of INR1,396.3 crore.
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