Shares of Alfa Laval (India) Ltd were frozen in the stock exchanges after the share price zoomed 20 per cent after its parent company Alfa Laval Corporate AB, Sweden, proposed to delist its Indian subsidiary from the NSE and BSE.
The company plans to make a delisting offer by acquiring the 11.23 per cent of the equity capital that was with public shareholders with the promoter’s stake being 88.77 per cent of the equity.
The Swedish parent of Alfa Laval (India) feels that the delisting would offer it full ownership that would provide the parent company increased operational flexibility to support its business and meet the needs of the customers and offer an exit opportunity to the public shareholders. Another reason was that it would not be subjected to the conditions for continuous listing to maintain a minimum public shareholding of 25 per cent as per rules.
The company, in a notification to the stock exchanges today, said that the public shareholders may tender their shares under the delisting offer at a price above the floor price determined in accordance with the delisting regulations. The floor price for delisting would be determined and notified in due course.