Hitech Corporation Limited is proposing to voluntarily delist its equity shares from the BSE and NSE. The company is seeking shareholder approval via postal ballot, with an indicative delisting price of ₹353 per share.

Hitech Corporation Proposes Voluntary Delisting from Stock Exchanges

₹353 per share is the indicative delisting price, while ₹252 per share is the floor price.

Reader Takeaway: The company aims to cut costs due to low free float, but delisting hinges on a 2:1 public shareholder vote.

What just happened

Hitech Corporation Limited's Board of Directors has approved a proposal for the voluntary delisting of its equity shares from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company is now seeking approval from its shareholders through a postal ballot.

The acquirer, Geetanjali Trading and Investments Private Limited, which holds 74.43% of the company, has set an indicative delisting price of ₹353 per share. This is higher than the floor price of ₹252 per share, as mandated by SEBI (Delisting of Equity Shares) Regulations, 2021.

Why this matters

The company believes that its small market capitalization and low free float do not offer significant advantages in terms of liquidity or public participation. Delisting aims to reduce ongoing compliance costs and administrative burdens associated with being a listed entity.

The process requires approval via a special resolution, with a specific condition that votes cast by public shareholders in favour must be at least two times the votes cast against. Regulatory and stock exchange approvals are also necessary, along with a successful reverse book-building process.

The backstory

Hitech Corporation has been listed on the stock exchanges. The decision to delist stems from the perceived disadvantages of being a publicly traded company with a small market cap and low free float, which impacts liquidity.

What changes now

If approved by shareholders and regulators, Hitech Corporation's shares will cease to be traded on the BSE and NSE. Public shareholders will have the opportunity to exit their investment at the price determined through the reverse book-building process.

Risks to watch

The primary risk is the failure to obtain the required shareholder approval, particularly the 2:1 majority among public shareholders. Regulatory hurdles and the outcome of the reverse book-building process also pose potential challenges. If the delisting fails, the company remains listed with its current challenges.

Peer comparison

While not directly comparable due to the delisting announcement, Hitech Corporation operates in the industrial goods sector. Other companies in this space often face scrutiny regarding market capitalization and free float dynamics, but a voluntary delisting is a significant step for any company.

Context metrics

• Promoter/Acquirer Group Holding: 74.43%
• Public Shareholding: 25.57%
• Indicative Price: ₹353 per share
• Floor Price: ₹252 per share
• E-voting Period: June 11, 2026, to July 10, 2026
• Results Declaration: On or before July 14, 2026

What to track next

Investors should closely follow the postal ballot voting results. The company's ability to secure the necessary public shareholder support is crucial for the delisting to proceed. The final exit price determined by the reverse book-building mechanism will be a key factor for shareholders deciding whether to tender their shares.