Linde india ltd ,under new sebi regulation has opted for delisting process before going for a triggered open offer.With many recent success in delisting be it clairs life science ,Polaris ,Infinite computers ,chances are high that this time it will have a successful d listing and if so investor should earn but please note that failure of d listing ( already failed twice ) there will be huge loss to present day buyers.
D LISTING offer open 15 /01 closes 21/01 .
Can you please give me some guidance regarding the right price for retail to offer and/or the share price target that you see by next week?
Last time the discovered price was Rs 600, where was the announced price was something like 225. The delisting failed as the minimum amount of shares were not tendered.
Looking forward to your advice
@adc : last time in 2011 things were very different (1) promoters held 89.5% so needed just 5.25% wherein today they need minimum 15%. (2) it was stand alone d listing offer wherein today it is open offer triggered based under new sebi regulations .(3) definition of discovered price is now changed and it will be only, if book is built .(4) Reliance capital trust hold close to 10% and there must have been prior negotiations with it when Linde decided to OPT for d listing first and if failed followed by mandatory open offer.
offer closes on January 21 and i may prefer to wait for giving view about likely discovered price , yes i am very confident that this time there will be a discovered price ( book built ).
Where does one apply for the delisting bids. Zerodha console does not have any link as such. Please do guide as to where to place bids
You can find the monthly bulletin on Buybacks, Delisting and Takeovers here along with the process on how to apply.
very interesting developments at Linde d listing process where bids closes on Monday 21/01/2018.
Yes, luckily I have exited day before yesterday.
But still how do you see it going forward, like the delisting looks like it will fail due to hyperinflated quotations. so what now?
if failed as per new sebi regulation it is linked to an automatic open offer around some rs 225 odd per share in case the applicant do not withdraw during a scheduled period .As per new sebi regulation the promoters after rejecting the discovered price has an option to give a counter offer within 2 days .
but at the moment this d listing appear a lottery ticket of rs 600 which can either give you 2025 or say 450 within next 8-10 days.
Lets suppose I buy on Monday around 600 and do not take part in the delisting and still have chance to surrender the shares for another year in case of successful delisting…
So as it stands I lose Rs 150 [for share price of 450 and failure] as opposed to Rs 1400 in case of delisting success.
So the risk reward ratio is really quite favorable.
Does this strategy look good or what will be your caveat.
YES you can very well do so with a caveat …the promoters need about 26 lakh shares more on Monday for a successful book built and arrival of discovered price which in any case unless some miracle happen can not be below 2025.
Suppose I buy 100 shares at rs 600 on Monday.
In that case can I participate in delisting process?
And say I don’t do anything and if delisting is successful I will get 2025 for one share?
And what if delisting fails , will stock continue to trade in exchanges and what is probabable price I will get in that case.
you can not participate in d listing process IF you buy on Monday . IF promoters get minimum 1 crore 28 lakh shares ( bids till rs2025 are for 1 crore 2 lakh shares ) there will be a discovered price of 2025.promoters have prerogative to accept or reject this price .IF accepted on or before 28 January the market price will settle around 1950 ( based on circuit limits) till the share trade so either you can sell at this price or wait for d listing and start of off market non stt paid exit offer to get 2025 net.
IF promoters do not get another 26 lakh shares on Monday d listing is automatically failed or even after getting shares they reject the discovered price of 2025 ,the share will tumble a lot and may settle around 400-450.
the above all is based on normal circumstances and in a rare unprecedented almost impossible case the discovered price can be much lower than 2025 too .
Thanks for detailed answer.
1.) Would you personally prefer to buy shares of this company.
2.) if I were to ask you about the probability out of hundred that the discovered price would be above rs 2000 what would be your answer.
@Prakhar_Agrawal : (1) yes i will buy some on Monday since i took an early exit during euphoria of d listing. so do not hold any now.(2) discovered price will be 2025 and the probability is 99% but will it be an exit price (depends on promoters ) the probability is 20% as of now…as of today…
Then what could be the possible exit price.
Also after how many days situation will become clear.
I think promoter would want to keep price as low as possible .
Still around 26 lakh shares required on Monday for a successful book built. assuming book built is successful and 2025 become a discovered price , on or before 28 January promoters have to take a call if to make it an exit price or reject it. so situation can be crystal clear only when promoters make such announcement.
i did not get what you mean by promoters would want to keep price as low as possible . please note that discovered price(if ) now can not be lower than 2025 even if a miracle happen .
I mean that after successful book building and price discovery of 2025 promoter have option to reject it and place counter offer so I was saying that they would want to place offer as low as they can according to circumstances.
Also what was the reason of 20 percent fall on Friday?
If it is implied that the bid by reliance trust the decisive bid is a threatening bid and promoters will reject 2025 , the counter offer will not be without negotiation with this bidder .yes the fall was because it is known that discovered price can not be lower than 2025 (if )and promoters will reject it.
Since rules of counter offer were notified only in November 2018 still not clear if it has been given shape of regulation plus the process to take the acceptance on counter offer.
ASSUME …2025 is rejected and Linde gives a counter offer of 1200 per share.i may think that those whose bids are up to 1200 will not be made party to counter offer acceptance/rejection process but only those whose bids are above 1200. being a counter offer no new bids may be allowed.