IT firm Patni Computer Systems on Monday said it has received shareholders’ approval for delisting the company from the Indian bourses and the New York Stock Exchange.
In a regulatory filing, Patni Computer Systems said shareholders of the company have approved the delisting proposal with a ‘requisite majority’.
As per the delisting proposal, equity shares of Patni would be delisted from the BSE as well as the National Stock Exchange and its American Depository Receipts (ADRs) would be delisted from the New York Stock Exchange.
U.S.-based iGate acquired Patni Computer Systems last year and intends to delist the domestic company from the Indian bourses and New York Stock Exchange by mid-2012.
iGate had acquired a majority stake in Patni in January this year for USD 1.2 billion in one of the largest deals in the Indian IT sector. Following an open offer, iGate now holds a stake of about 82 per cent in Patni.
The delisting will be done through the reverse book-building process and iGate has indicated a floor price of Rs 356.74 per share — the minimum level, at which shares have to be purchased.
However, iGate has the right of not purchasing the offered shares if the final price discovered through the above process is not acceptable to it. On November, 16, 2011, the board of directors of Patni Computer approved the delisting proposal.
“Given the low liquidity in the company’s equity shares, the delisting proposal would provide the public investors of the company with ability to exit fully from shares of the company,” the company had said.