Penny stock under Re 1: Company announces voluntary delisting from BSE; promoters to acquire 25.16% public shares at Rs 92.36 floor price!

CES Ltd has issued a Detailed Public Announcement (DPA) regarding a voluntary delisting offer for its equity shares from BSE Limited. This offer, managed by Finshore Management Services Limited, is being made by the company's promoters, Mr. Venkateswara Rao Davarapalli and Mrs. Sreevani Kancharla. The primary objective of this delisting is to acquire the remaining 91,57,988 equity shares, representing 25.16 per cent of the total paid-up equity share capital, currently held by public shareholders. As of the DPA date, the promoter and promoter group collectively hold 74.84% of the company's equity. The promoters aim to gain full ownership of CES Ltd., citing enhanced operational flexibility, reduced compliance costs associated with listing, and the ability to pursue long-term business plans involving expansion into new geographies and business activities with potentially different risk profiles.

The delisting process has been underway since December 27, 2024, when the promoters first expressed their intention to the CES Ltd. Board. Following due diligence by a peer review company secretary and an independent registered valuer, a floor price of Rs. 92.36/- per equity share was determined. The Board approved the delisting offer on January 8, 2025, and subsequently, shareholders overwhelmingly supported the proposal through a postal ballot and e-voting, with 100 per cent of public shareholders' votes (36,78,388 votes) cast in favour. The BSE granted its in-principle approval on July 15, 2025. This delisting offers public shareholders an opportunity to exit the company at a price determined through a reverse book-building process, providing immediate liquidity, especially in the context of heightened market volatility. The acquirers have confirmed that all necessary funds for the delisting offer are available.

CES Ltd, established in 1985 and formerly known as Serve All Enterprise Solutions Limited, is an IT and ITeS provider specialising in Business Process Management (BPM) for mid-sized global enterprises. The company offers a diverse range of services, including industry-specific solutions (e.g., Alternative Asset Management, BFSI, Retail), business process services (e.g., loan processing, fraud prevention, F&A), technology services (e.g., digital transformation, cloud & infrastructure, data analytics), and specialised solution services (e.g., Cash Reconciliation, Web Harvesting). Headquartered in Hyderabad, India, CES Ltd. has a global presence with delivery centres in Hyderabad, Chennai, and Visakhapatnam, as well as near-shore facilities in Europe, North America, and the Middle East, with a significant portion of its IT-enabled services exported to the United States.

The company has a market cap of Rs 6 lakh and the stock last traded in October 2024 at Re 0.44 per share. The stock has a 52-week high of Re 0.44 per share and a 52-week low of Re 0.30 per share. The shares of the company have a PE of 0.06x, an ROE of 14 per cent and an ROCE of 17 per cent. In FY25, the company reported net sales of Rs 522 crore, operating profit of Rs 44 crore and net profit of Rs 30 crore.

Disclaimer: The article is for informational purposes only and not investment advice.