Chellarams migrates to ASeM on free float deficiency default
Chellerams Nigeria Plc based on its free float deficiency, has been authorized by the NSE to migrate to Alternative Securities Exchange Market category (ASeM) board, for Small and Medium Enterprises (SME’s)
Chellarams Plc had applied to migrate from the Main Board of the NSE to the ASeM Board following the company’s 14.87 percent free float deficiency, which falls short of the NSE’s 20 percent requirement for companies listed on the Main Board. The migration was endorsed by NSE on 20th February.
A Free-float represents the portion of shares of a company that are in the hands of public investors as opposed to locked-in stock held by promoters, company officers, controlling-interest investors, or government.
The free float helps to better calculate the market capitalisation of companies because it provides a more accurate reflection (than entire market capitalisation) of what public investors consider the company to be worth.
Daily Times recalls that Chellarams was one of twelve companies listed on the NSE with free float deficiencies tagged BLS which means Below Listing Standards, for continuing operations with deficiencies regarding Continuing Listing Standards.
Other companies so tagged were, African Paints Plc, A.G. Leventis Plc, Capital Hotel Plc, Caverton Offshore Support Group Plc, Great Nigerian Insurance Plc, Infinity Trust Mortgage Plc, Interlinked Technology Plc, Nigerian Ropes Plc, Transcorp Hotels Plc, Union Bank of Nigeria Plc, the Tourist Company and Champion Breweries.
