Linde India hits record high on delisting plan; stock zooms 36% in 3 days

The stock hit a record high of Rs 620, up 6% on Monday, rallying 36% in past three trading days from Rs 455, as compared to 0.71% rise in the S&P BSE Sensex.

Shares of Linde India hit a record high of Rs 620 per share, up 6%, extending their over 25% rally in past two trading sessions, after the BOC Group, promoter of the company offered to take full ownership of the company and delist the firm from the BSE and NSE.

The stock rallied 36% in past three trading days from Rs 455 on November 6, as compared to 0.71% rise in the S&P BSE Sensex. In 10 trading days, it zoomed 56% against 6% rise in the benchmark index.

“The Company has received a letter dated 7 November 2018 from The BOC Group, the promoter and promoter group of the Company. The promoter has expressed their intention to make a voluntary delisting offer in respect of the equity shares of the Company by acquiring 25% stake held by the public shareholders,” Linde India said in a regulatory filing.

The objective of making the delisting offer is to obtain full ownership of equity shares of the Company, which will provide the promoter group with operational flexibility to support the Company's business and future financing needs, The BOC Group said in a letter.

Other reasons include ongoing expenses with the maintenance of listing on BSE and NSE will be reduced, including investor relations expenses; the need to dedicate management time can be dedicated to the Company's business, and time dedicated to compliance with listing requirements gets reduced, it added.

The BOC Group is part of the Linde Group and owns 75% equity in Linde India. Of the 25% stake held by the public shareholders, 11% stake with mutual funds, followed by individual shareholders (6.79%), foreign portfolio investors (2.77%) and insurance companies (2.24%).

Linde India's board has already appointed ICICI Securities as the merchant banker for carrying out the due diligence process.

According to The BOC Group, the delisting price will be determined in accordance with the reverse book building process in the manner specified in the delisting regulations after the fixing of the floor price.

"The floor price is not a ceiling for the purpose of the reverse book building process and the public shareholders may offer their respective shares at any price higher than floor price," the letter added.

At 10:18 am; Linde India was trading 4.4% higher at Rs 608 on the BSE, as compared to 0.09% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 628,283 equity shares changed hands on the BSE and NSE so far.