Alfa Laval is a very strong delisting candidate.

The parent company holding is close to 89%.

In last one decade, the parent company has made a three open offers to acquire shares from the public.

The most recent one was in 2009.

The parent company held only 51% of shares in 2001.

An open offer in 2001 took the promoter stake to 64.1%.

An open offer in 2007 took the promoter stake to 76.73%.

An open offer in 2009 took the promoter stake to 88.77%.

I looked at more than a dozen MNCs where promoters hold more than 75%, but Alfa Level is the one that I like the most.

I may buy a few shares tomorrow.

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Assuming Alfa Laval goes to delisting, what price are you expecting the buy back to happen?

I am not sure if Alfa Laval will be able to delist, but there is a good probability that the promoter will try to delist the stock.

I intend to sell the stock when the reverse book building is about to open.

In India, it is difficult to get a stock delisted; especially because of the recent changes that SEBI made in the delisting rules (2009).

The recent attempts of the promoters of Suashish Diamonds and Goodyear to delist their respective companies, have failed.

In case of Suashish Diamonds, the discovered price was rejected by the promoter.

In case of Goodyear, the offer did not receive the minimum response needed.

If the promoters are to delist Alfa Laval, they will have to pay a significant premium to the market price.

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Alfa Laval's board to consider delisting in today's board meeting.

Alfa Laval plans to delist shares from exchanges

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Floor price declared is 2045. Alfa Laval may increase the offer price to 2750-3000. Expected exit price could be in range of 3300-3500. But at all dependeds upon various factors.

Alfa Laval has to pay significant premimum as similar with Atlas Copco in order to succeed delisting.

It is difficult to get Alfa Laval delisted.

There are no big public shareholders in Alfal Laval.

Mutual funds hold only 9709 shares, domestic institutions hold 8460 shares, FIIs have no shares and large individual investors hold 31607 shares.

Only category of big holders is "corporates" who own 120517 shares.

1830055 shares are with smaller investors. Of these 1830055 shares only 1422212 are in demat form. Many haven't even bothered to get their shares dematerialized.

To delist the company will have to get at least 1020101 shares (50% of the public shares).

That looks very difficult to me.

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To delist, Alfa Laval will have to pay Rs 3850 per share.

Alfa Laval now has to decide by March 5th if it wants to pay such a high price to delist or remain listed.

Alfa Laval delisting may be expensive as bids for 10.2 L shares were made up to Rs 3,850/share - The Economic Times

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From the article:

Shares at the price of 10 grams Gold.

To be frank I call such people id#$%.

When the price will go to 15000 they will change quote to 1 kg rate of silver.

Such people get caught in shares and live with that whole life fighting case in court to get correct price and pay court fees.

Cadbury story is famous in this case.

Anyways I just wanted to ask. Now say suppose 10 lakhs shares are required to delist. And when the date ends say suppose only 2 lakhs shares tendered. Then company cancels delisting and all shares are given back to original party.

Then why don't companies when price fall after it fails start buying shares from market at 100-200 shares daily and increase their stake?

As per the new takeover code, promoters can purchase upto 5% in a year, through creeping acquisition, till the promoter stake reaches the maximum permitted 75%.

So for delisting, the company has to mandatorily go through an open offer to buy 50% of public shareholding.

Promoters can't buy shares from the open market if their stake is already at 75%. They have to make an open offer to acquire more shares.

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Alfa Laval fixes delisting price at Rs 4000/- per shares.

Alfa Laval shareholders hit a jackpot

I was hearing tulsian yesterday.

He said now those who are holding shares have 2 options.

Since people who have already tendered their shares will get 4000 per share.

Now who haven't. Either they can deal with the company directly and will get 4000 per share tendered. Or sell in open market as tendering process will attract higher STCG tax and separate out of market settlement charges.

So those holding old shares and haven't tendered, should sell in open market in order to safeguard their interest from market settlements.