LIKELY MNCs WHICH WILL DELIST

Post the mandate of 25% public float, in today’s market most of the MNCs are buzzing high. Expectations are huge that many of them would go in for delisting. Infact even Indian companies like Suashish Diamonds are up on expectations that it would go for delisting.

The buzz word today on the floors of Dalal Street is ‘delisting’. And lets take a quick look at what exactly it means when we say a company is going in for delisting.

In simple layman terms, delisting means removing the shares from trading on the stock exchanges. This delisting could be voluntary or involuntary. Voluntary delisting happens when promoters or the acquirers get the approval of the shareholders by a special resolution to delist itself. As per the norms, if public float goes down to 10% or below, the acquirer then has the option to buy the outstanding shares from the remaining shareholders at the discovered offer price. This gives an exit route for the investors but when it is delisting at the behest of the stock exchange, due to violation of norms, then investors are stuck. Offer price has the minimum base price or floor price, based on 26 weeks average traded price, without a maximum price. But companies delisting themselves from regional stock exchanges do not have to provide any exit prices for investors as the stock continue to remain listed in the BSE and NSE. It is only when it is delisted from these two exchanges that exit route is offered.

Given below is a list of MNCs which will have to necessarily either reduce promoters holding to 75% or if they do not want to reduce their stake, go for delisting.

Astrazeneca Pharma		97.91%
Lotte India Corporation		93.09%
HSBS Investdirect		92.89%
Fresnius Kabi		90%
BOC India		89.48%
Gillette India		88.73%
Elantas Beck India		88.55%
Kennametal India		88.16%
Foseco India		86.48%
Saint-Gobain Sekurit India		85.77%
Fairfield Atlas		83.91%
Atlas Copco		83.77%
Ineos ABS (India)		83.88%
Honeywell Automation		81.24%
Blue Dart Express		81.03%
Oracle Financial Ser Soft		80.47%
Novartis India		76.42%
Timken India		80.02%
Sulzer India		80.03%
Sharp India		80%
Alfa Laval (India)		76.73
3M India		76%
GMM Pfaudler		75.62%

Suashish Diamonds is not a MNC but it is sure to go for delisting. Promoters’ stake in the company currently stands at 89.43%. The company had contemplated delisting in Oct 2009 but it did not go through after Ashish Goenka, the promoter and acquirer decided not to accept the discovered price (being the price at which the maximum number of shares was tendered) of Rs.320 per share established by the book building process on the BSE.