Fresenius Kabi tanks almost 16%

Fresenius Kabi is down almost 16%  at Rs.123, with an intra day low at Rs.119.90. Its 52-week low is at Rs.78.50.

The stock is down after the company has got into a spat with SEBi by yet again moving the Securities Appellate Tribunal (SAT). It has filed an appeal challenging the conditional approval given by SEBI for its delisting.

SEBI had given the ok for delisting, asking it to complete the delisting process within a 3 month timeline. But at the same time, it had said that the company would have to take into account its pre-Offer for Sale (OFS) promoter holding of October 2012 to determine the minimum number of shares to be acquired for the delisting.

The company field a plea stating that SEBI had hiked the threshold limit from 90% to 95% which the company says is beyond the scope of the delisting regulations. According to SEBI norms, a delisting offer is considered successful if the post-offer shareholding of promoters crosses the higher 90% of the company's total share capital. This means that the company would require it buy up 14% from the market.