Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
In June 2010, the Ministry of Finance, Government of India, had issued guidelines pertaining to minimum public
shareholding for all listed corporates. The guidelines were later revised in August 2010. As per the guidelines, all private
sector listed corporates must have at least 25% public holding while listed PSUs should maintain a minimum public
holding of at least 10%. The corporates were given time of three years to abide by the guidelines. The deadline for
companies to achieve the stated level of public holding is June 2013.
The corporates, particularly fundamentally strong multinational companies (MNC) may not have the inclination to increase
their public holding and may resort to delisting to have better flexibility in taking business decisions. The case for delisting
becomes stronger in the current weak trend prevailing in the equity markets, which has led to a substantial fall in stock
prices providing an opportunity for such corporates to buy out the remaining stake with the public at lower valuations. The
chances of a delisting offer succeeding also appears higher due to a moderation in return expected by the public
shareholders and the enhanced willingness to exit the stock even at a marginal premium to current stock prices.
We have analysed and identified MNC companies, which would be probable delisting candidates. We have filtered the
companies based on the criteria of a minimum promoter holding of 75% and return on capital employed (RoCE) higher
than 10%. We have further looked into the availability of funds to buy back the public holding
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
In June 2010, the Ministry of Finance, Government of India, had issued guidelines pertaining to minimum public
shareholding for all listed corporates. The guidelines were later revised in August 2010. As per the guidelines, all private
sector listed corporates must have at least 25% public holding while listed PSUs should maintain a minimum public
holding of at least 10%. The corporates were given time of three years to abide by the guidelines. The deadline for
companies to achieve the stated level of public holding is June 2013.
The corporates, particularly fundamentally strong multinational companies (MNC) may not have the inclination to increase
their public holding and may resort to delisting to have better flexibility in taking business decisions. The case for delisting
becomes stronger in the current weak trend prevailing in the equity markets, which has led to a substantial fall in stock
prices providing an opportunity for such corporates to buy out the remaining stake with the public at lower valuations. The
chances of a delisting offer succeeding also appears higher due to a moderation in return expected by the public
shareholders and the enhanced willingness to exit the stock even at a marginal premium to current stock prices.
We have analysed and identified MNC companies, which would be probable delisting candidates. We have filtered the
companies based on the criteria of a minimum promoter holding of 75% and return on capital employed (RoCE) higher
than 10%. We have further looked into the availability of funds to buy back the public holding
- Oracle Fin.Serv.
- Novartis India
- Honeywell Auto
- Timken India
- Thomas Cook (I)
- GMM Pfaudler
- Fres.Kabi Onco.
- Ineos ABS (India)
- Singer India
- Kennametal India
- Fairfield Atlas
- Wendt India
- Warren Tea
- Gillette India
- Alfa Laval (I)
- Astrazeneca Phar
- Blue Dart Exp.
- 3M India
No comments:
Post a Comment