BOC’s Share Price is bubbling…It reached a 52 Week high of Rs 227.50 on BSE today but closed lower at Rs 218 + ….Volumes were 3.32 lakh shares,nearly twice the two week average of 1.70 lakh shares….41 % is marked for Delivery……The Market Cap is Rs 1860 crs,but the float is under Rs 200 crs
89.48 % of the Equity is held by the foreign parent.In 2007 it held 54.80% but in January 2008 it received a preferential allotment of 36.2 million shares and also acquired 13.21million shares in June 2008 to take itto this current stake of 89.48%
At the 73rd AGM on May 29,2009 in Kolkata,the Chairman,Mr S M Datta was quite assertive that there was no intention of any buy back or de-listing.He announced capex plans of Rs 1000 crs over the next three years
Well,the fact is that the float has to increase to 25% in a phased manner for BOC to remain listed…the other alternative is to offer to buy back the remaining shares and apply for delisting
So what do you think ?….Dilute stake back to 75% or below or delist !?
Clearly Shareholders are smarter and will not accept any offer below Rs 300 thereabouts….The foreign parent would need to shell out Rs 269 crs to buy out the remaining shares at Rs 300…..That’s small fry to get rid of over 25000 shareholders !
Interesting Days ahead for BOC on the Bourses…..take a bet