Comments
The share price of Alfa Laval India, which has proposed to delist its shares voluntarily from the bourses, spurted on the NSE to its 52-week high following upward revision of the indicative offer price to Rs 2,850/share by the Swedish promoters to acquire the balance floating stock prelude to delisting.
It was barely three months ago that Alfa Laval had indicated a floor price of Rs 2,045 as the acquisition price as that was the average closing price of the scrip on the NSE.
Apparently, the price at which the remaining shareholders (the promoters Alfa Laval Corporate AB, Sweden hold 88.77 per cent stake in the equity) were willing to part with the shares and the share price increase subsequent to the proposal, made the company to up the acquisition price by nearly 40 per cent.
In a communication to the exchanges, Alfa Laval India said that “after considering prevailing market conditions and with a view to reward shareholders, the acquirer was willing to accept equity shares tendered in the delisting offer at a price of Rs 2,850 per equity share (indicative offer price)’’.
Alfa Laval (India) Ltd had informed the exchanges on October 5, 2011 regarding the approval of the board of directors to the delisting proposal of Alfa Laval Corporate AB, Sweden, the promoter and the acquirer.
Though the merchant banker had fixed the floor price at Rs 1,904 per share then, considering the average of closing market price on the NSE for September 2011 of Rs 2,045 per share, the acquirer had recommended a floor price of Rs 2,045 per share under the delisting proposal.
On the NSE, Alfa Laval stock today hit its 52-week high of Rs 2,702.70 after the revision of the acquisition price was notified. The stock was trading subsequently at Rs 2,670 level, a 12.7 per cent increase, with a volume of trading of around 1.6 lakh shares.
Alfa Laval India has an equity capital of Rs 18.16 crore. The stock price has spurted by nearly two-and-half times in the past one year from a low of Rs 1,111 to Rs 2,700 levels today.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.