Shares of selected multinational companies (MNC) have rallied up to 10% on a strong response from investors to Honeywell Automation of India’s offer-for-sale (OFS) issue which oversubscribed 7.4 times.
Elantas Beck India, Kennametal India, BOC India, Fairfield Atlas and Timken India have rallied between 5 and 10% on the Bombay Stock Exchange (BSE).
Honeywell Automation of India has surged maximum upper limit of 20% at Rs 2,875 in opening deals. The stock currently trading higher by 16% at Rs 2,765 and has seen huge trading activity.
A combined around 400,000 shares have already changed hands on the counter so far against an average less than 50,000 shares that were traded daily on both the exchanges.
Honeywell Asia Pacific Inc, the parent company of Honeywell Automation of Indian has received a total bid for 4.07 million shares against 0.55 million shares offered for sale, according to information available at BSE.
The promoter has fixed a clearing price of Rs 2,450 per share, a well above the floor price of Rs 2,150 per share fixed for the said issue.
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Most of the MNC stocks have corrected sharply from their 52-week highs after the promoters of some companies announced to reduce their stake via offer for sale. This will help these companies to meet the deadline of market regulator Sebi guidelines for listed companies to have at least 25% of equity held by non-promoters.
The market analyst believes that this correction offers an attractive level to enter the stock from a long term perspective as the price decline overhang to diminish substantially.
Among the individual stocks Kennametal India has surged 10% to Rs 875, followed by Elantas Beck India (up 9% to Rs 1,266) and BOC India (up 6% to Rs 405). Fairfield Atlas has locked in 5% upper circuit at Rs 139, while Timken India up 4.3% at Rs 196 on the BSE.