Scrapping delisting hits Bosch

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The Bosch Chassis System stock fell 33 per cent in the last week from Rs 718.50 to Rs 478.65 after the company announced the withdrawal of its delisting offer.

The company had fixed a floor price of Rs 415 for the delisting offer, according to the Securities and Exchange Board of India (Sebi) guidelines.

However, shareholders had preferred to offer their shares at a final price of Rs 750 through the reverse book-building process, which the acquirer, parent company Robert Bosch, had rejected.

The promoters hold 80 per cent of the company's stake, while public shareholders own 12.13 per cent and corporate enities 3.84 per cent. Institutional investors, including mutual funds and UTI (3.83 per cent), held 4.03 per cent stake in the company at the end of the September 2007 quarter.

The company has a book value of Rs 150 and is currently trading at a P/E multiple of 23.93 on its trailing 12-month EPS of Rs 20 a share on BSE. The company has posted 92 per cent growth in net profit at Rs 12.01 crore (Rs 6.27 crore) at the quarter ended December 2007.