Chettinad Cement soars on delisting proposal

The promoters of Chettinad Cement Corporation, the Rs 1,500-crore turnover company, are making a voluntary offer to the company's public shareholders to delist the shares from stock exchanges.

The stock is currently listed on the National Stock Exchange and Madras Stock Exchange and in the permitted securities category of the Bombay Stock Exchange.

The board is meeting on Tuesday to consider the delisting proposal.Shares of Chettinad Cement soared 20% to scale a new high of Rs 683.9 intra-day on the BSE on Friday.

They have, in fact, risen substantially ahead of the delisting announcement, gaining 22% from its weekly low of Rs 560. Brokers attributed the rally to expectations of a delisting offer at a premium to the market price.

The promoters of Chettinad Cement hold a large 88.4% stake in the company, according to shareholding details available as on March 31, 2012.

The remaining 11.6% equity is held by the public, including 3.3% by institutions and 4.7% by corporate bodies.

The company posted a net profit of Rs 23.4 crore on sales of Rs 473 crore in quarter ended December 31, 2011, compared with the figures of Rs 38 crore and Rs 422 crore, respectively, in the corresponding quarter of the previous year.