KARACHI - Foreign investors are interested to continue their investment in Pakistan with profitable and fastest growing companies and they are reluctant to sell their shares against meager prices offered by a Fast Moving Consumer Good Company (FMCG) recently.
These investors have planned to increase their investment in Pakistan equity market but the sudden delisting move of a profitable company have left them in the lurch influencing them to review their plans in future.
It is pertinent to mention here that KSE is continuing  its record making journey on every coming day as the benchmark index have made record for marching towards the level of 1,9000.
Girish Bahook of Acacia Partners said that his company is interested to bring portfolio investment in stock market. However, the low protection to minority shareholders made them cautious to contribute to the fastest developing company.
He said the delisting of FMCG is not transparent and voluntarily as foreign investors have been given no option to retain the company’s stakes but to sell out shares due to laws stated by Security Exchange Commission of Pakistan (SECP).
Bahook added the price of shares offered to minority shareholders are not attractive as it should have been by the companies in case of its plans of delisting from Pakistan equity market.
Pakistan’s Karachi Stock Exchange is one of the leading stock markets in the world having potential to expand manifold in near future as a matter of fact stock exchanges in the developed countries have lost their charm for a large number of investors. He said that the regulations laws of delisting do not provide enough protection to minority shareholders neither it allows companies and shareholders to hold negotiation for talks on share prices.
FMCG plan of delisting from Pakistan stock markets have initially offered a prices of Rs 9,700 per share to minority shareholders however it was rejected by majority that resulted constitution of committee under Karachi Stock Exchange management. Now the prices of shares have been reached to Rs 15,000 per share after recommendation of KSE committee, few companies and FMCG management but few foreign investors are not happy with the offer and their departure from stock exchanges.
A foreign company in Pakistan won’t bring up investment if it is treated as if badly through rules and regulations which do not protected to it. Rather the investors may divert to India’s stock exchange for handsome returns along with maximum protection.