May 30, 2011

Buying Eastern Investment @ Rs. 5000 Selling Jullundur Motor @ Rs. 175 - Tanya

Buying Eastern @ 5000 and Selling Jullundur @ 175. Please contact for confirm trades. Inquiries invited, Bargaining Discouraged



May 29, 2011

Seller Eastern Investments @ Rs. 6500 Buyer Jullundur Motor @ Rs. 170

I have 400 shares of Eastern Investment. I would like to sell it @ Rs. 6500/-. U can contact me on 0265-2451273 or 09429024949. If any one seller of jullundhar motors @ Rs. 170/- may also contact to me.

May 28, 2011

Don't Leave Unclaimed Share Certificates With Companies / RTA

Some times there is a corporate action like Splitting of Share Face value / Mergers etc . Investors are called to surrender old certificates for new .


Oriental Hotels - Share Split to Re 1
State Bank of Bikaner And Jaipur - Share Split to Rs. 10
State Bank of Travancore - Share Split to Rs. 10

Investors ( holding shares in Physical Mode ) should , now , not delay such surrender of old certificates and should claim new certificates at the earliest due to the latest SEBI guidelines in this regard .


For shares issued by a Company in physical form pursuant to the public issue or any other issue, which remain unclaimed shall be dematerialised and the same shall be transferred to "Unclaimed Suspense Account" with one of the Depository Participants. All corporate benefits in terms of securities accruing on such viz. bonus shares, split etc. shall also be credited to such Unclaimed Suspense Account. The voting right shall also remain frozen till the shares are claimed by rightful owner of shares.

May 27, 2011

Please Consult All Dealers For Latest Rates and Availability of Rare Shares



09896444123  .






08108303330 or





Contact: 022-67809990
Toll Free: 1800 209 2929


9831077353, 9830022485, 9830012269,9433092689
033 32930043/0129 Fax : 033,





Along with publication of  every Rate List of dealers , we would , also , attach  this Contact list of share dealers


List Incomplete - To be expanded



Niraj Kajaria 's List

Kajaria Securities & Finance
We are Buying Selling
Bharat Nidhi Ltd 7000 7700
Cadbury India Ltd 1800 2000
Tcs E-serve Ltd 3600 3900
Tamil Nadu Merchandile Bank 58000 65000
Hind Vidyut Products Ltd 1500 1600
Otis Elevators 850 1050
Tata Technologies 450 525
Pnb Finance And ndustries Ltd 4500 5000
Philips India 200 250
Farm Enetrprises Ltd (Reliance). 450 500
Oswal Agro Mills Ltd 42 45
Bharat Hotels 150 170
Sri Natraj Ceramics 150 165
Jullunder Motors 155 175
Catholic Syrian Bank 200 230
Nandan Biomatrix Ltd 65 80
Bombay Stock Exchange(BSE Ltd) 180 205
Calcutta Stock Exchange (CSE) 1200 1600
Bangalore Stock Exchange 10 12.75
Madras Stock Exchange 6 8
Delhi Stock Exchange (DSE Ltd) 22 26
Essar Steel Ltd 53 56
Ratnakar Bank 59 62
Bharti Tele 3000 3600
MSTC Ltd 3000 3400
Sistema Shyam Tele Services Ltd 13 15
Eastern Investments 6100 6500
Mohan Meakin Breweries Ltd 120 140
Frick India 750 800
Pilani Investments & Industries Ltd 1900 2100
Nath Biogine 35 44
Alembic Glass (Shreno) 2500 3000
A B Corp Ltd (Amitabh Bacchan Corp Ltd) 40 60
Carrier Aircon 60 100
Kudramukh Iron 280 330
Aspinwall & Company 130 155
Ramaraju Surgical 200 250
Raunaq International 75
Indian Tou Dev Corp 200
Western India Plywood 21
Hind Times 500 550
India Seamless Enterprise 10
We are interested in purchasing Delisted /Pre Ipo Companies Shares in Big Lot/Quantity.
call : ( 9831077353, 9830022485, 9830012269,9433092689
033 32930043/0129 Fax : 033,


Blogwriter 's Comments

Blog Readers are strongly advised to consult all Share Dealers of Rare Shares ( Contact details given in various Posts in this Blog ) to ascertain the latest rates .

Regards ,


Share Dealers ( Active on this Blog ) 's contact details :-


09896444123  .






08108303330 or




Contact: 022-67809990
Toll Free: 1800 209 2929


9831077353, 9830022485, 9830012269,9433092689
033 32930043/0129 Fax : 033,






List Incomplete - To be expanded



May 25, 2011

What is the Latest on Bharat Nidhi ?

vinaya said...
Why Bharat Nidhi ltd is out of radar since last 2/3 weeks ?

May 24, 2011

Tamilnad Mercantile Bank - Excellent Results For 2010-2011 , EPS Rs. 8820

Buying / Selling List - Nilesh Kotak






BSE 190- 210







For Other Rare Shares being dealt by Mr. Nilesh Kotak ,Please click the following link :-

Buying Tamilnad Mercantile Bank @ Rs. 60000 - Manish


The current rates are between 62-64k for sale and my buying is at 60000. Please contact if this interest you. Manish 9958006642

For other shares in which Mr. Manish deals , please contact at 9958006642

Buyer - Tamilnad Mercantile Bank @ Rs. 55000

Hi all, I am buying Tamilnad Mercantile Bank at Rs 55000 only. If anyone interest contact on 09869251465

Share Buying / Selling List - Please Send 3 Up to Shares and Contact Details For Rest

After deliberations with well wishers of the Blog , the Blog would publish up to 3 shares list (  with rates if required )

For the rest of the shares of the dealer's interest , we would give the contact details / website of the dealer and the investor can directly contact the dealer regarding the balance rare shares.



May 22, 2011

Buyer Cadbury @ Rs. 1600

I want to buy cadburys at 1600 Rs per share. pls contact me on my email:

Red Beacon on Car -Aam Indian Hails Mamta Banerjee 's Move

Jalandhar investors have expressed great appreciation and even gratitude at Mamta Banerjee's move to do away with a red beacon and siren of her official CM car . This is the victory of the " Aam "  Indian and a big step forward towards doing away with culture of VIP ism which is the bane of present day India.

All politicians and officials should voluntarily remove the Beacons and sirens from their vehicles . Shrieking sirens scare common motorists and are a major traffic hazard. The days of the kings and Jagirdars are long over. Let us not create a new class of Post 1947 " Jagirdars " .

May 19, 2011

Control Underground Coal Fires

Investors of Coal India Limited have expressed happiness at the financial performance of the Company for the year ended March 2011.

But the share holders of Coal India Limited have expressed deep concern for the raging underground coal fires in the Chhota Nagpur region . It is unbelievable that some of these fires have been raging for over a century !

This is destruction of our National wealth. Steps should be taken on a war footing to extinguish these fires and save this limited and exhaustible fossil fuel .

May 18, 2011

BSE - Share Consolidation - Update by Saumin Patel

saumin patel to me


         The board of the Bombay Stock Exchange (BSE) that meets on Wednesday will discuss a proposal to consolidate the shares of the exchange, in preparation for a bid to list its shares, a person familiar with the matter said.
        Currently, BSE shares have a face value of `1, which will become `2 after the consolidation as the number of shares is halved. Though this would not have any impact on the financials of the company, the move would pave the way for the company to get listed on the bourses.
        As Securities and Exchanges Board of India regulations do not allow a company with face value below `10 to issue shares below an issue price of `500, this move would allow the exchange to issue shares at a price close to its current valuations, when it gets listed. The share price of BSE is estimated to be around `250 now


Guidance Wanted on CRB Capital FD Refund Procedure

 bhuri vayeda wrote:

pl. do write me the procedure to get refund of fixed deposit amount from CRB CAPITAL MARKETS LTD/ CRB CORPORATION LTD

bhuri vayeda

email :

May 17, 2011

Frick India Limited

new posts

September 09, 2017

Frick India- AGM -2017- Highlights

Frick India-Super-Q1-2018 Results EPS -Rs.98/65p

Please click :-

Q1 2018 ( Q1 2017 )

Sales Rs.92 cr ( Rs.53 cr 13 lakh )

Net Profit Rs.5 cr 92 lakh ( Rs.3 cr 35 lakh )

EPS  Rs.98 /65 p ( Rs.55 /75 p )

Equity : Rs.60 lakh ( share Rs 10 paid up )

Old / Original Post

August 17, 2017

Frick India-Annual Report-2016-17

Please click


AGM on 08/09/2017 at Faridabad


old original / post

new posts

May 16, 2017

Frick India-Excellent 2016-17 Results

After the resolution of legal cases regarding ownership among the Promoters ,there is  a tremendous overall growth push is sales and profits of Frick India in 2016-17 being the first financial years Post Resolution of ownership disputes

Sales in Q4 ( 3 months ending 31/3/17 )rose by 80% over Q3 ( 3 months ending 31/12/16 ) 

In the previous financial year ( 2015-16 ) there was an exceptional , One Time exceptional  income ,( compulsory land acquisition ) of Rs.3 cr 07 lakh ( shown under Other Income )

This meant in the previous year around Rs.50 /- EPS was on account of this Land Sale.

No such Exceptional Income / Profit in 2016-17

But increase in EPS to Rs.203/07p in 2016-17 which means around 40% increase in net profits from normal operations. 

Dividend -25%

 Frick India is on a fast growth trajectory


It appears ( PLEASE RECHECK THIS ) that in the Delisted Market  Frick India is not having sellers at Rs.4000 / Share.

  • Blog : Please Do Not Take Any Investment Decision based on this. Please only do a further Self Study /Contact Dealers for the current Rates.   

  • Investors should take note that many a time Dealers falsely ( in a Superficial Two Way Quote )  give a Low Selling rate , although they have no shares for sale so that they can buy ( at artificially Low rate .Actually such Dealers are ONLY buyers.


       Frick India would further jump once Metropolitan Stock Exchange ( as is widely expected in the Share Markets ) starts trading in Equities.


old posts

ISIN: INE499C01012

Frick India is a pioneer in industrial refrigeration like cold storage . It appears to have been promoted in 1962  by Frick of USA.( now part of Johnson Controls Group , one of the Top 50 manufacturing Companies of the USA ) - Please recheck this information.

As per the Annual Report of Frick India ( 2011-12 ) Frick India is now Independent.

( Please recheck this information independently also - No Responsibility )

The share capital of Frick India is Rs. 60 lakh ( Six Lakh shares of Rs. 10 each .)

The Book value is around Rs.1000 per share and EPS around Rs. 140 per share for 2009-10. It is expected to be better for the year ending March 2011 .

No. of Shareholders ( 31-03-11 )- 2211 

In the unofficial trading share of Frick India is available around Rs.800 per share. This puts the market capitalisation / enterprise value at around Rs. 50 crore. ( It is noteworthy that in comparison to the enterprise value ,  Frick 's plant is situated on around 22 acres of land on the Main Mathura Road ( GT Road ) Faridabad - NCR ).

( Unconfirmed Sources suggest the present value of  Frick India 's Faridabad land upwards of Rs.100 crore per Acre - PLEASE RECHECK THIS INFORMATION )


August 26, 2016

Frick India -AGM 2016 -Shareholders' Report

AGM of Frick India was held at 11 AM , on 26/08/16 , at Faridabad

The Management of Frick India was very positive about the future , especially the next 4 -5 years ,of Frick India ,as the share transfer disputes among the Promoters have been resolved and Company can take up , in right earnest , its pending expansion plans 

1 ) The Management agreed to issue Bonus Shares and a Split in face value. If there is need , a Rights Issue , as well.

2 ) To the shareholders' grievance that , at present , they are being offered only Rs. 2000 per share in the grey market as there is no trading in the Metropolitan Stock Exchange , the Management assured that they  go  in for Listing in BSE  and NSE. They said for Listing in BSE ( under SME section ) the minimum share capital required , for Listing  is Rs 3 crore . Frick India is taking steps to meet it. Listing at Metropolitan Stock Exchange is only a stop gap measure.

3 ) Regarding the redevelopment of the prime 22 acres land ( present factory at Faridabad ) would be considered if the Land Laws allow it , as the original land acquisition was for industrial purpose.

4 ) New machines / product lines are being added . Puffing Machine is making ultra thin and well insulated sheets for construction of buildings. Frick India may take up the line of making Pre Fabricated ( specially insulated ) buildings / houses.

5 ) Frick India would , also , manufacture home / office air conditioners.


August 22, 2016

August 20, 2016

Frick India- Annual Report -2015-16 - Excerpts - Comments / Q1 ( 2016-17 ) Results


----------- For further study please click the following Links :-

Frick India Limited is , also , dealers of Industrial Cooling Towers

Shares of Frick India Limited  are listed only at Delhi Stock Exchange which is , presently , closed for trading. Analysts and commentators , especially of delisted shares, are of the opinion that investors of DSE listed asset laden and highly profitable companies like Frick India ,Jullundur Motor etc can gain handsomely  ( immediate around 100 % upwards ) if DSE resumes trading or if DSE listed shares are listed for trading under the " Permitted Shares " category of BSE / NSE

The Peer comparison with BSE / NSE  Listed companies e.g. Blue Star ,Voltas , Ingersoll Rand etc. in case of Frick and Indian Motor Parts and Accessories ( IMPAL ) in case of Jullundur Motor on parameters of Book Value , PE ratio , Sales  etc supports this contention of the analysts..

The management of Frick India Limited should :-

Issue a liberal bonus ( Book value is Rs. 1000 + )
Split the Face Value to Re. 1


June 03, 2016

Frick India 2015-16 Profits Nearly Double, EPS Rs.195, Book Value Rs.1825

For Year Ending 31-03-2016

Sales : Rs 200 cr 70 lakh

Gross Profit Rs. 18 cr 

Profit Before Tax Rs. 16 cr  28 lakh

Net Profit : Rs. 11 cr 69 lakh

EPS : Rs.194 / 83 p


As on 31 /03/2016

Share Capital : Rs. 60 Lakh ( 6 Lakh Shares of Rs. 10 each )

Reserves :108 crore 90 lakh 

Book Value Per Share ; Rs.1825



Frick India Listed on Metropolitan Stock Exchange 





Sales Rs. 128 cr ( Previous Year - 93 cr )

Gross Profit Rs. 13.71 cr ( Rs. 11.56 cr )

Net Profit : Rs. 9 cr ( Rs. 8.50 cr )

EPS Rs. 150 . 37 ( Rs. 142.61 ).

  Capital Rs. 60 lakh ( Rs. 10 paid )

Promoters ' Holding 63.75 %.

Disclaimer : Please recheck all figures independently before taking any investment decision . No responsibility with the Blog / Writer

Click on Image to Enlarge

Frick India -Excellent Q1 ( Ending 30-06-11 ) Results - EPS Rs. 56 / 36 p

Frick India Limited

Q-1 ( ending 30-06-11 ) Results

Q1 ( Ending 30-06-11 )      ( Q1 Ending 30-06-10 )

Sales - Rs. 32 cr              ( Rs. 20 cr )

Gross Profit Rs. 4 . 6 cr   ( Rs. 2.65 cr )

Net Profit  Rs. 3.38 cr    ( Rs. 2 cr )

EPS  Rs. 56.36 p          ( Rs.33. 37 P )

Equity Rs. 60 Lakh ( 6 Lakh shares of Rs. 10 each ).

A Dividend of 20 % has been proposed for the financial year ended 31-03-11

Click on Image To Enlarge


Frick India Limited- Annual Report ( 2010-11 ) - Comments

Frick India Limited as on 31-03-11 has a Share Capital of Rs. 60 lakh ( Rs. 10 paid up shares ) and Reserves of Rs. 6736 lakh , giving it a Book Value of  around Rs. 1133 per share.

In the APPLICATION OF FUNDS ( Page 23 - Annual Report - 2010-11 )

Frick India Limited has Rs. 1733 in Investments ( mainly mutual funds ) and its Net Currents Assets ( i.e. Current Assets minus Current Liabilities ) stand at Rs. 5112 lakh.

Even if we deduct Rs. 1207 lakh of debt on its Balance Sheet , Frick India Limited has liquid funds worth Rs. 5638 lakh or Rs. 940 per share..

Future Plan of Action ( Page 4 - Annual Report -2010-11 )

The Company has entered into an Agreement with Vilter , USA to manufacture complete range of high efficiency reciprocating compressors for export to Vilter under the Buy-back clause of this Agreement and for export to various other international territories . This process would continue

The Company is continuing to upgrade its Design and Engineering Department in order to be in a position to undertake Malls , Naval and Office Air - Conditioning and Ventilation Jobs.


Frick India Q3 Results EPS Rs. 69 Excellent

Excellent Top line and Net Profit Growth

First Nine Months EPS equals nearly last full ( 12 months ) year's EPS


For Q3 ( 3 Months Ending 31-12-11 )            

Sales Rs. 41 Cr                                                          

Gross Profit : Rs. 5 : 31 Cr                                           

Please Click on Image
Net Profit  4 : 14 Cr                                                  

EPS 69                                                                           


         For First 3 Quarters ( 9 Months Ending 31-12 -11 )                                                   Sales 101 Cr

                                      Gross Profit 11 : 17 Cr

                                             Net Profit 8 : 71 Cr.
                                                       EPS 145

Frick India Excellent 2011-12 Results EPS Rs. 174

Sales : 157 cr

Gross Profit :15 cr 28 Lakh

Net Profit : 10 cr 42 lakh

EPS Rs .174

Share Capital Rs. 60 Lakh
Face Value Rs. 10 ( Total Shares 6 Lakh )

Percentage of Promoter Holding : Around 64 %


Frick India's Q3 ( ending Dec 2013 ) Zooms 192 % ( Please Recheck )


Sales rise 3.16% to Rs 42.39 crore
Net profit of Frick India rose 192.38% to Rs 3.07 crore in the quarter ended December 2013 as against Rs 1.05 crore during the previous quarter ended December 2012. Sales rose 3.16% to Rs 42.39 crore in the quarter ended December 2013 as against Rs 41.09 crore during the previous quarter ended December 2012.ParticularsQuarter EndedDec. 2013Dec. 2012% Var.Sales42.3941.09 OPM %10.383.12 -PBDT4.771.65189 PBT4.391.20 266 NP3.071.05 192

data taken from business standard website. please check at your own end

M# 09824601977

Financial Highlights ( 2014 -2015 )

Sales : Rs.157 cr 44 lakh

Gross Profit : Rs. 9 cr 20 Lakh

Net Profit :Rs. 6 cr 36 Lakh

EPS  ( Rs. 10 paid up share ): Rs 105 / 92 p

Book Value ( per share ) : Rs.1633 /21 p

Share Capital : Rs. 60 Lakh ( 6 lakh shares )

Dividend : 20 %.


Frick India -Important Issues of Bonus and Relisting

Your Query(ies)
 Q-The fact of and reasons for the permission taken to condone the delay in holding the AGM are not stated in the Annual Report (2012)

Company Answers (in Bold )

A. There is no delay in holding the AGM of the Company, accordingly no question of permission for condonation of delay.
Further, the company made an application on 21/08/2012 for an extension of time for the purpose of holding AGM which was granted by the ROC under section 166(1) read with second proviso attached thereto for a period of 3 months.

Q 02.
The reasons for the variance in Provisional Net Profit (2011 -12 ) which gave EPS of Rs. 175 Per Share and Final EPS of Rs. 150 Per Share has not been explained.

A .During our Statutory audit, there was an increase in Provision for Deferred Taxation from Rs.11.77 Lac to 124.45 Lac. Since it is statutory provision, hence we have to provided the same, other wise there is no significant change in net profit (before tax) from Rs.1528.49 Lac (Provisional) to Rs.1508.27 Lac (Audited).
Q 03.
in view of Book Value of Rs. 1280 Per Share and EPS of Rs. 150 Share Holders had taken up with the then Company Secretary Mr. Raman Khalsa, for a Liberal Bonus and a Split. The Annual Report is silent on this,
A.Since company is in expansion mode, the company may consider the same for future requirements of the Company.
Q 04.
Further , Share holders had taken up with Frick India the SEBI guidelines regarding Relisting in BSE / NSE as DSE is non operational
Relevant SEBI guidelines ;-
Although the correspondence on this crucial issue was acknowledged by Mr. Raman Khalsa, the Annual Report ( 2012 ) is silent on this  issue.

A .As per Clause 9 of the SEBI Circular no. CIR/MRD/DSA/14/2012 dated May 30, 2012 regarding Relisting in BSE / NSE as DSE is non operational, the said circular apply to only : -

(i) Recognized stock exchanges 
(ii) Stock exchanges that stand de-recognised as on date of this circular 
(iii) Stock exchanges that have applied for derecognition/ exit as on the date
of this circular

Hence, the above-said circular is not applicable to the Company.

Please refer page no. 05 of the SEBI Circular no. CIR/MRD/DSA/14/2012 dated May 30, 2012

Page 5 of SEBI Circular , as mentioned by Frick India , refers only to Stock Exchanges . Frick India should not Misquote.

Frick India , in the interests of its Non promoter Shareholders , should follow , without any further delay , SEBI Directive dt. 30-05-12 , on Relisting in NSE / BSE.

Please read Page 5/5 of SEBI Circular:-

Further , the Company should appreciate the fact that Issue of Bonus Shares does not mean any outflow of funds so the answer that Frick India needs funds for expansion and thus cannot issue Bonus shares is highly illogical and unacceptable to Shareholders

( Please Recheck Independently - Information Given In Good Faith )

Caution : Please recheck and recalculate  every figure and fact before taking any investment decision . No responsibility with this Blog / Writer

General Warning : Investment in shares can be injurious to your WEALTH.

Caution :The blog writer has personal/ family members' holdings in this company ,so please make suitable "provisions " for likely over optimism

( PS : All information given in good faith. Please recheck all facts etc. No responsibility with this author / blog. )

May 16, 2011

Foseco and Buybacks- Comments by Satyakam Mishra

ookson Plc , the parent of metallurgical chemicals maker Foseco India, has shown a novel way to scores of global companies to escape minimum holding needs for listing on Indian stock exchanges . But that may still be interpreted as a securities law violation and insufficient compliance, say lawyers.

The world's biggest maker of ceramic linings for metal smelters has gifted a portion of its holdings in Foseco India to an undescribed 'Karibu Holdings', avoiding a potential offer to buy out minority holders, or selling to other investors that could have pressurised Foseco's stock price.

The London-listed Cookson had last year transferred 11.48% of Foseco India stake to Karibu Holdings UK, bringing its stake down to 75% to comply with Indian listing norms that is enforced gradually, it said in one of its result filings. It held 86.5% before the transfer. "It (minimum public holding) was introduced so that float can be maintained and the scope for price manipulation can be minimised,'' says Pavan Kumar Vijay, managing director, Corporate Professionals, a legal advisory firm.

"It also provides the modes for complying with the same, keeping in view the interest of minority shareholders and to ensure real public float. The transaction doesn't adhere to the Listing Agreement, Sebi Takeover Regulations, Sebi Insider Trading Regulations and also requires to be evaluated from the tax angle." Union finance minister Pranab Mukherjee, last year, mandated that the public holds at least 25% of any company that is listed on stock exchanges to ensure a 'non-manipulable' stock market.

Since there was some resistance on fears it may lead to value erosion, lobbyists managed to extend the time-frame for compliance by three years. For initial public offerings too, the 25% public holding norm should be complied within three years if the market value at the time of IPO is Rs 4,000 crore.

"The company is in compliance with the Listing Agreement and has made necessary filings," Cookson said in a terse statement. "It does not consider it appropriate to discuss private matters." Clause 40A of the listing agreement between companies and the stock exchange prohibits promoters from indirectly holding stake in the company to maintain minimum public shareholding.

It doesn't recognise the sale of shares through off-market transactions for meeting holding norms since it provides scope for transferring shares to a known party, depriving the right of the public shareholders. "The transaction requires a prior exchange approval and mere intimation to the exchange is not enough," said Darshan Upadhyay, associate partner, Economic Laws Practice.

"However, gift of shares is not prohibited by a person resident outside India (other than NRIs and OCBs) to other person resident outside India." Under a different rule, the Foreign Exchange Management Act, the transaction may be permissible, say lawyers.

"Overseas transfer, by way of gift of shares abroad, is permitted under FEMA," says Akil Hirani, managing partner, Majmudar & Company. "If it is done by way of gift, it doesn't attract capital gains tax. Since there is no change in control and there is no restriction under the listing agreement, there is no problem with such atransaction." This can be a boon for companies such as US tyre maker Goodyear, drug maker Astra-Zeneca and gas producer BOC who in the past failed to buy out minority holders.

Investors believe that these companies could take a similar route to avoid depressing prices. But investors, who have bought into these stocks expecting a huge premium, may be disappointed. "Karibu appears to be a front for Cookson and the word transfer suggests that the transaction is off-market to avoid the details like price etc," says Anil Jindal, director, Jindal Securities and a shareholder in Foseco.

Part 2

"In case of a delisting through reverse book-building, the pricing can be manipulated as promoters continue to hold significant chunk indirectly, defeating the whole purpose of reverse book-building. This also creates unreal float in the market."

Investors had declined to tender their shares in some of the offers of these companies. If others follow Cookson, the premium of some companies' shares may shrink. AstraZeneca is trading at a price to earning (PE) ratio of 60 compared with Pfizer whose current PE ratio is 20. Gillette is trading at a PE ratio of 57 compared with Emami's PE ratio of around 29. Industrial equipment maker Atlas Copco paid a hefty premium early this year to buy out minority holders, when some others failed.

Goodyear offered a 33% premium in February last year that investors declined. AstraZeneca's shares rose 20% after its board approved delisting plans. It has gone up 60% in the past one year on hopes of delisting. As per notes to accounts for the results in July last year, it just mentioned that the promoter, Cookson Group Plc, UK, had transferred 11.48% to Karibu of the UK.

"The transaction involves a transfer of a 11.48% stake, it attracts certain disclosures in terms of transaction details to the stock exchanges," says Rajesh Thakkar, partner, MZS & Associates. The company declined to comment on whether Karibu is an associate. 

Satyakam Mishra


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