Nirma Drops Move to Consolidate Face Value to Rs.50,000 Per Share

Small Shareholders of the Delisted  FMCG  Company , Nirma Limited  ,have welcomed the cancelling of the grossly  Anti Small Shareholder move to Reverse Split ( Consolidate the Face Value of One Share from Rs. 5 Per Share to Rs. 50,000 Per Share ) by issuing one Share of Rs. 50,000 for every 10,000 shares.

Such a move is  a under hand  Compulsory acquisition of shares from small shareholders.

For this Nirma Limited Resolution , please click :-

{ Please do read the highly arrogant ( Anti Non Promoter shareholder mindset ) and illogical Justification - given for this Shameful move in the EXPLANATORY STATEMENT in the Agenda circulated .}

http://www.nirma.co.in/pdf/EGM-Notice-12-12-2012.pdf 

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Nirma Compulsory Buy Back- Shareholders to Oppose Tooth And Nail Shareholders of Nirma Limited are determined to oppose vehemently Nirma Limited 's anti small shareholder move to compulsorily buy back non promoters shares @ Rs. 225 ( Rs 5 Paid ). AGM at Ahmedabad on 23/07/13 , 11 AM Shareholders are writing their opposition by sending letters , Regd Post , to the Compliance Officer. Later , legal action ( like with Cadbury India and Shakti Metdor would be undertaken )
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A few years ago, asset laden and listed company Binani Metals Limited , had in a similar move made a Reverse Split ( consolidation from Rs. 100 Face Value to Rs. 1000 Per Share ) thus making a compulsory Buy Back ( at very Low Rates ) from Small Share holders and of Custodian of Enemy Properties Shareholders ( now in Pakistan ).

Binani Metals Limited ( exclusively listed at Calcutta Stock Exchange ) is the only Listed Share in India to have a Face Value of Rs.1000 /- !!

For Binani Metals Reverse Split, please Click :-

http://www.rareindianshares.info/2011/01/binani-metals-limited-why-face-value.html
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http://www.rareindianshares.info/2013/03/nirma-limited.html

http://economictimes.indiatimes.com/nirma-ltd/directorsreport/companyid-10565.cms

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uly 06, 2013

Nirma Compulsory Acquisition of Non Promoters Details

Total Number of Non Promoter Shares  : 7439704 shares - Rs. 5 Paid  ( 4 :68 % )

No. of Non Promoter :Shareholders :41,619 

Reason given in EGM Notice ( for 23/ 07 / 13 -11 AM , Ahmedabad ) as to why Promoters ' shares are excluded from compulsory capital reduction is that these Share holders have given their consent to RETAIN their shares ( Page 3 - Explanatory Statement  , Second Last Para ).

So , the legal position may be that all those shareholders ( Promoter or Non Promoter ) who give their consent to retain their shares would be excluded from this compulsory acquisition / cancellation of shares . 

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NB: Send this letter , also , in hard copy by Regd. Post / Speed Post

Nirma Limited - Compulsory Buy Back- Letter to Compliance Officer

From :-                                                                       Dated:- 04-07-2013

To ,

The Compliance Officer ,

Nirma Limited,

Nirma House, Ashram Road,

Ahmedabad - 380009

Dear Sir ,

With due respect , we state as under :-

1 ) We hold shares of your Company under L/f : ( A/c - ).

 2 ) The move to compulsory acquire shares selectively from the remaining share holders @ Rs. 225 Per Share is unrealistic and  unacceptable to us .

3) The compulsory buy-back rate of Rs.225/- is grossly unfair to the remaining public share holders as the rate at the time of Delisting was Rs. 260. Instead of increasing the Rate , it has been decreased

3 ) In case our name ( , L/ f  ) figures in your list of shares for Compulsory Cancellation , then  , please remove it - from the list ,under intimation to us (  by Registered post / Speed Post ).

4 ) We request you to withdraw this anti Non - Promoter move in its entirety .

5 ) PIease, also dispatch a certified copy of the valuation report.

6) In case, the Company persists , then we would be left with no other remedy but to challenge the same in appropriate Court of Laws  , including the Hon'ble High Court of Gujarat and the Hon'ble National Company Law Tribunal.

( Please study the rulings given in the case of compulsory and selective  cancellation of shares by Cadbury India Limited )

As we are CAVEATORS , please do keep us updated of all the legal moves by the Company in this regard.

Regards

Share Holder

email ;-

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Email address of Nirma :-

info@nirma.co.

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Disclosure :- Blog Writer holds in his name / family members shares of Nirma limited  ( less than 10,000 shares ) and Binani Metals Limited