‘Atlas Copco delisting an investor lure’

Atlas Copco India's stock is rising fast. Analysts say the delisting offer is attractively priced.

Construction equipment maker Atlas Copco India’s is on a gaining spree on the bourses ever since its promoters made a delisting offer of Rs 2,250 a share,which analysts feel is attractively priced.

Atlas Copco AB,the Sweden-based promoter of Atlas Copco India Ltd,intends to buy back the remaining 16.23 per cent public stake at a price of Rs 2,250 per piece. The delisting offer would begin on March 7 and close on March 11.

“The offer is attractively priced by the promoters. I think this is a good opportunity for retail investors to exit the company,”

CNI Research CMD Kishore P Ostwal said.

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The Swedish parent holds 83.77 per cent stake in the Indian unit. Post offer,shares of the company would get delisted from the Bombay Stock Exchange and from Pune Stock Exchange.

“Price offered by management is convincing to the shareholders. The success of the offer would depend on the shareholder response,” SMC Global Securities strategist & head of research Jagannadham Thunuguntla said.

Atlas Copco Stock has outperformed its peer group companies at the BSE bourse ever since it announced the delisting plan on October last year.

Since October,the shares of Atlas Copco has surged over 25 per cent on the Bombay Stock Exchange,while its sector peers have risen in the range of 1-20 per cent.

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Analysts believe it is a good opportunity for Atlas Copco investors to book profit by exiting the company.

“In case the buy back offer fails,the stock of Atlas Copco could see a decline. Investors can preempt this by tending shares to the management and earning good returns,” said an analyst.

JM Financial Consultants Pvt Ltd is acting as a manager to the offer.