On June 27, 2024, the Board of the Securities and Exchange Board
of India (the "SEBI") approved certain
proposals to amend India's existing legal framework governing
delisting of equity shares from public markets
("Proposed Amendments"). These are
expected to address concerns that have discouraged an attempt at
delisting from the Indian public markets. The Proposed Amendments
are expected to become law shortly and will amend the Securities
and Exchange Board of India (Delisting of Equity Shares)
Regulations, 2021 (the "Delisting
Regulations") that govern the delisting process in
India.
One of the key changes under the Proposed Amendments is the
introduction of a fixed price as an alternative to the reverse
book-building process to determine the exit price of the delisting
offer. The fixed price offered by an acquirer must be at a minimum
15% premium over the floor price determined under the Delisting
Regulations. The floor price calculation will now include,
