The minority shareholders of Alfa Laval (India) Ltd, who participated in the reverse book building process initiated by the company to delist its shares, are set to win a jackpot as the company is offering an exit price that is nearly 33 per cent more than the discovered price (the price at which the maximum number of shares were tendered under the reverse book building process).
Against the price of Rs 3,000/share that was the average price under the reverse book building process, Alfa Laval promoters have fixed a final price of Rs 4,000 a share as the exit price for accepting shares successfully tendered in the delisting offer.
However, for those shareholders who stayed away from the delisting offer or whose offer of shares were rejected for any reason, the company will keep open an exit window for one year from the date of delisting to submit their shares at the exit price.
For those who are trying to acquire the scrip from the market before delisting to make quick returns, the yield may not be so rewarding since the stock is quoting close to the exit price. In fact, today in early trade, it even exceeded it briefly. However, those who bought the scrip even at its monthly/weekly lows would have something to cheer since they would have seen significant value accretion.
In a communication to the stock exchanges, Alfa Laval (India) said that its parent had proposed to buy 2,040,202 equity shares representing the balance 11.23 per cent of paid-up equity share capital from the public shareholders.
The promoter will acquire 1,032,788 shares tendered in the delisting offer, constituting 5.7 per cent of the paid-up capital, exceeding the minimum shareholding needed for the delisting offer to be successful.
All the successful public shareholders who tendered their shares will be paid the consideration at the exit price of Rs 4,000 per equity share by March 7. The acquisition of shares tendered in the Delisting Offer by NRIs and payment are subject to receipt of the RBI approval.
In case of public shareholders whose bids have been rejected or who did not or were not able to participate in the RBB process, a window would be open to offer their shares to the promoter at the exit price during a period of one year (Exit Period) starting from the date of delisting of the shares from the BSE and the NSE.
The stock hit a new 52-week high of Rs 4,100 today on the BSE but ceded much of the gains after the exit price (which was less than that) came to be known. On the BSE, the share was trading at Rs 3,850 after touching Rs 4,100.
The stock had hit a weekly low of Rs 3362,.05 and a monthly low of Rs 2,685.55 on the BSE. If investors had acquired the scrip at these lows, they would still make significant gains by offering the scrip to the promoters during the exit period.