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Global provider of specialised products and engineering solutions Alfa Laval got about 1.68 lakh shares or 8.25 per cent from investors on the opening day of its delisting offer on Wednesday.
The company plans to mop up 20.40 lakh shares.
It is one of the largest first-day response for a company's delisting offer on day one in the recent past, according to market watchers.
The current public shareholding is 11.23 per cent (20.40 lakh shares) and for the offer to be successfully minimum 50 per cent shares should be subscribed to the offer.
Most of the offers came at a price range between Rs 2,850 and Rs 3,150 a share. The company had given the indicative offer price of Rs 2,850 per equity share and a floor price of Rs 2,045. However, market analysts are of the opinion that the offer is likely to get completed around Rs 3,100 to Rs 3,150 per share.
The delisting offer will open till February 22. JM Financial Consultants Private Ltd is the merchant banker assisting Alfa Laval with the process.
The board of directors of the company at its meeting held on September 19 last year had approved the proposal to initiate the delisting offer.
Announcement of the discovered price or exit price and the promoter's acceptance or non-acceptance of it would be made on or before March 5 while the final date of payment of consideration has been set at March 7, according to the delisting notification posted by the company on the BSE.
The parent company had been increasing its stake in the company since 2001. However, then (in 2001), the company could raise the stake up to 64 per cent only as against the then original of 76 per cent.
In 2007, the parent company had managed to increase its holding from 64 per cent to 88.77 per cent. The company had offered Rs 1,300 a share at that time to mop-up shares from the Indian public.
Shares of the company today ended the day at Rs 2,933.20 on BSE on Wednesday, down 0.40 per cent from its previous close while the Sensex jumped 1.9 per cent from its previous close to end the day at 18,202.41.
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