Minority shareholders in Vineet Jain owned Bharat Nidhi Limited registered complaints to SEBI over undervalued buyback.
“We are shareholders who have invested in the company a long time ago, the company is now seeking to push us out of the company at an artificially depressed price,” one of the complaints read.
- A group of minority shareholders in Bharat Nidhi Ltd (BNL) have sent multiple complaints to the SEBI.
- The company is owned by Vineet Jain, the Managing director and Director of Bennett, Coleman & Co. Ltd. (B.C.C.L.), commonly known as The Times Group, India’s largest media group.
- The shareholders expressed concerns over a proposed share buyback they say “grossly undervalues” the company.
- The investors have asked the SEBI to stall the buyback process and appoint an independent valuer.
- The buyback offer is part of a regulatory requirement to provide an exit opportunity to shareholders of companies listed on de-recognised regional stock exchanges.
- The offer of Rs. 11,229 per share values the company at about 32.79 billion rupees, which is barely above the company’s book value of Rs. 11,130.
- Bharat Nidhi is following the due legal procedures set out by the regulators under the applicable laws, Company Secretary Amita Gola told Reuters.
“We believe the concerns raised are unfounded,” Company Secretary Amita Gola said.