Patni stock run-up casts a cloud over delisting plan

Software services firm iGate will wait for three days before deciding on course of action in relation to Patni Computer Systems delisting, CNBC-TV18 said Tuesday, quoting iGate CEO Phaneesh Murthy.

iGate acquired a controlling stake in Patni for Rs 503 a share in 2011 and had planned to delist it by buying out the remaining around 19% it doesn't own.  The delisting offer is to open on Wednesday. But there have been concerns if it will go through. iGate has set a floor price of around Rs 357 a share for the delisting. Patni shares today closed at significantly higher Rs 499.55 on NSE. Murthy said confidence with delisting is low and he is unlikely to be open to a price above Rs 450 a share, CNBC-TV18 said. Delisting process in India is trickier than rest of the world, he said, adding, if Patni delisting doesn't go through now, it will not go later. If the delisting doesn't go through, or it cancels the plan, then iGate will have to reduce its stake in Patni to ensure 25% public shareholding as per the guidelines set by Securities and Exchange Board of India.