Will Novartis, BASF delist successfully? SMS Global answers

A few of the individual midcap names have been buzzing for the last few days, including some candidates for delisting, usually MNC companies. There have been a few off late and there are more which the market is speculating about.

Novartis India surged by 11.78% on the stock exchanges on Monday amid reports that its promoters may buy rest of the shares of the company and delist from the stock exchanges.
For the delisting to be successful, Jagannadham Thunuguntla, strategist and head of research at SMC Global Securities Limited said, the promoter needs the response of at least 13.58% in reverse book-building. The current promoter holding is at 76.42%. "The chances of delisting going through successfully are very low," he said.
Along with it, BASF India shares also shot up by 8.29% to Rs 636.80 and Fresenius Kabi by 3.35% to Rs 132.75 on the exchanges on talks of delisting.
The chances of delisting are quite high as far as Fresenius Kabi is concerned, said Thunuguntla as the promoters already hold 90% of the stock and require only 5% more to conclude the delisting.
"As far as BASF India is concerned, for the delisting to be successful, the promoter needs response of at least 16.67% in reverse book-building,