Shares of Shreyas Shipping & Logistics were locked in 20% upper circuit on the BSE at Rs 312.60 in intraday trade on Monday after the company said its board would meet on Wednesday, May 24, to consider the proposal to delist the shares.

The company is the Indian-flagged vessel owner of Transworld Group. Over the past four sessions, the stock has fallen 23%. It touched a 52-week high of Rs 413 on August 25, 2022, and a 52-week low of Rs 212.20 on March 27, 2023.

The promoter of the company, Transworld Holdings Limited, has expressed its intention to acquire the entire equity interest held by the public shareholders of Shreyas Shipping & Logistics; therefore, by making a delisting offer to voluntarily delist the shareholding of the company from the stock exchanges where it is currently listed, namely BSE Limited and National Stock Exchange of India Limited.

As of March 31, 2023, the promoters hold a 70.44% stake in Shreyas Shipping. Of the public shareholders, resident individual investors hold 24.03% of the shares while the remaining 5.53% are held by non-resident Indians, bodies corporate and others.

The proposed delisting will allow members of the Promoter Group to take full ownership of the company, thereby increasing operational flexibility. The delisting proposal will enhance the company’s operational, financial and strategic flexibility, including but not limited to corporate restructuring, acquisitions, and exploration of new financing structures, including financial support from the Promoter Group.

In its rationale for the proposed delisting, the company said the proposed delisting would provide public shareholders with an opportunity to immediately realise some value in their shares.

Meanwhile, the company’s consolidated profit after tax fell 60% year-on-year to Rs 18 crore in the January-March quarter (Q4FY23), compared to Rs 45 crore in Q4FY22. Operating income fell 29% year-on-year to Rs 81 crore from Rs 115 crore a year earlier. Reported Ebitda margin contracted 800 basis points to 48% from 56%.

The container shipping market continued to decline compared to the previous quarter due to ongoing global geopolitical turmoil, the company said. Charter and freight rates are on a downward trend.