Ingersoll-Rand (India), which provides engineering products to various industries, has revived and fast-tracked an earlier plan to buy back shares.
The company, in which US-based Ingersoll-Rand has a 74 per cent stake, had announced its plan to buy back share in March. It then got delayed, as the promoter company was unwilling to participate.
The buyback would have shrunk the share holding, leading to the promoters’ holding going above 75 per cent. According to the regulator’s guidelines this would have mandatorily meant an open offer by the promoter. According to a banker close to the company, a fresh offer for share buyback is expected to come in a month’s time.
“Ingersoll Rand USA has engaged AZB Partners as their representative for this filing, and the application is being made now,” said a company spokesperson, explaining that an exemption was being sought from making an open offer. The company could not provide the status of the application. AZB Partners’ comment could not be had.
“If the company plans to de-list, then exemption can be sought from making an open offer,” said N Rajasujith, partner at a leading national law firm, Majmudar & Co.
The stock has recovered from a low of Rs 204 a share recorded in March. It closed at Rs 316.4 a share on the BSE on Tuesday. The all-time high was Rs 425 a share in March 2006.
The company’s total share holding is 31.56 million. Of this, 26 per cent or 8.2 million is with the public. At the current market price, the public share holding is valued at about Rs 260 crore. According to the balance sheet of the company for 2008-09, it has reserves of Rs 715.8 crore.