Atlas Copco delisting offer opens
Atlas Copco has proposed to delist itself from the stock exchange and is offering a profitable deal to all their investors. The company owns 83.77% stake in the local unit and is buying back the remaining 16.23% public stake through this offer.
- (1888PressRelease) March 08, 2011 - (PTI) Construction equipment maker Atlas Copco India's delisting offer opened today, which market experts said is "attractively" priced.
Atlas Copco AB, the Sweden-based promoter of the firm, has made the offer to obtain full ownership of the company.
The Swedish parent presently holds 83.77 per cent stake in the local unit and is buying back the remaining 16.23 per cent public stake though this offer.
While the floor price is Rs 1,426 per equity share, Atlas Copco AB has communicated an indicative offer price of Rs 2,250 per equity share after considering the prevailing market conditions and with a view to reward the shareholders.
Market experts feel the offer price of Rs 2,250 per equity share is attractive and fairly priced for the investors, especially for retail shareholders.
"This is a good offer for investors. The indicated delisting offer price is nearly the stock's 52 week high and it is worth for existing shareholders to give up the share," Geojit BNP Paribas Financial Services Research Head Alex Mathews said.
The offer, being made through the reverse book-building process, closes on March 11. "This may be a good time to take profits," he added.
SMC Global Securities' strategist and head of research Jagannadham Thunuguntla said he also thinks "the price offered by promoters is quite convincing for investors".
Besides, market experts also emphasised that investors should ideally sell the shares in the open market before the offer closes, as there are risks that if the delisting falls through, the stock may plunge sharply.
"Past experiences show that if the delisting falls through the stock plunges thus impacting all investor community. So it's better to avoid this kind of risk by
selling shares during the offer," said a Mumbai-based broker.
The stock has been on a gaining spree ever since its promoters announced intention to delist from local bourses.
Outperforming its peer group companies, the scrip has witnessed a smart jump of over 25 per cent in the last four months since the proposal was announced. The delisting proposal was announced in October last year.
After the successful offer, shares of the company would get delisted from the Bombay Stock Exchange and from Pune Stock Exchange. The company is listed on the local bourse since 1972.
Atlas Copco Sweden is an industrial group with leading position in compressors, construction and mining equipments, power tools and assembly systems.
The company is primarily engaged in the business of engineering and rental of engineering products. JM Financial Consultants Pvt Ltd is the manager to the offer.