BOC Flares up over 20% on announcement of Delisting….blogged on this possibility earlier in January 2010…bet comes good…Look out for more MNC’s taking this route

On June 15,2010,BOC announced that they had received a proposal from their majority shareholder for voluntary delisting at a price not less than Rs 225.29….The very next day BOC zoomed to a 52 Week High of Rs 314.90…It’s Rs 286 today

Check out their detailed announcement here

http://www.bseindia.com/xml-data/corpfiling/announcement/BOC_India_Ltd_150610.pdf

On January 19,2010 I had blogged on this very possibility despite Management having vehemently denied it in the 2009 AGM…Had told you’ll to take a bet on this at Rs 218….30% to 40% gains since January 2010 would have come about…Check out the details in this earlier blog below

What’s Bubbling in BOC ?…closed at Rs 218 but after recording a 52 week high of 227….Volumes are twice the two week average

Watch this Blog for a Hint of a few more MNC Companies with higher than 75% parent holding that may opt to delist rather than comply with the dictat of diluting holding to below 75% so as to ensure a minimum 25% Public Float….One is a Pharma Company…another is in IT… and one is an engineering leader

It’s a Hot Investment Theme to Invest in MNCs that are potential candidates for delisting  

Cheers !  

What’s Bubbling in BOC ?…closed at Rs 218 but after recording a 52 week high of 227….Volumes are twice the two week average

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