Saint Gobain delisting indicative offer at Rs 31 per share

The stockhad hit a 52-week high on news of delisting. It is on a 5% circuit limit so maybe a 5% down circuit is what it can hit today because of the fact that the current price is Rs 60 and the indicative delisting price is at Rs 31 per share.

Shifting focus to the shareholding pattern, the parents hold 85.7% stake but the interesting point is that  not a single institutional investor or a retail investor holds more than 1% stake in the company. It looks like the remaining 14% is pretty much scattered across many investors. So,  that is going to be a big challenge for the company to convince all these investors to buy, which is virtually half of the current market price.

However, it seems that the market had anticipated such a move because if one notices the  stock price movement since January, it rallied good 80% from the lows of Rs 32 to close to Rs 60 now. Hence, it looks like this is now a final move by the company.

In fact, last year around same time, the management had indicated intention of delisting by the parent company but they had not made an open offer. Even the company’s fourth quarter performance was a bit of disappointing on the bottomline. It reported a net profit of Rs 75 lakh versus a profit of close to Rs 3 crore.

Also watch the accompanying video.