Honeywell Automation India Limited (HIAL), a subsidiary of diversified American business conglomerate Honeywell, said the company is in the process of complying with the minimum public shareholding norms as stipulated by market regulator SEBI.
In a filing on the NSE on Wednesday, the Noida-headquartered company said its promoter Honeywell Asia Pacific Inc. has informed that it would reduce its shareholding in due course in order to increase its public share-holding to at least 25% by June 3, 2013. Honeywell Asia Pacific Inc. holds 18.76% in Honeywell Automation.
“This is to inform you that, subject to receipt of relevant regulatory approvals and mid market conditions, and in order to comply with the minimum public shareholding requirement of 25% in terms of the SCRR Rules, Honeywell Asia Pacific Inc. intends to reduce, in due course, its shareholding in HAIL through an ' offer(s) for sale' on the stock exchanges in one or more tranches,” the company said in the filing.
Television reports on Monday said that Honeywell Inc. was planning to delist Honeywell Automation from the Indian stock exchanges following which the company’s stock price had gone up by almost 14%. The report had said that the delisting was expected to happen through a reverse book building process, and a 'leading foreign bank has already been given the mandate to run the process of delisting.
The company, however, had clarified to the BSE that the news item was clearly speculative and incorrect.