Denso India gains after promoter sets indicative price for delisting

Denso India rose 3.89% at Rs 98.70 at 9:41 IST on BSE after the company's promoter announced an indicative offer price of Rs 95 per share for delisting shares of the company from the stock exchanges.

The announcement was made after market hours on Wednesday, 17 July 2013.

Meanwhile, the S&P BSE Sensex was up 73.68 points, or 0.37%, to 20,022.41.

On BSE, 12,000 shares were traded in the counter as against an average daily volume of 21,047 shares in the past one quarter.

The stock hit a high of Rs 99.75 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 98.70 so far during the day. The stock had hit a 52-week low of Rs 36.50 on 8 February 2013.

The stock had outperformed the market over the past one month till 17 July 2013, rising 26.67% compared with the Sensex's 3.22% rise. The scrip had also outperformed the market in past one quarter, soaring 109.48% as against Sensex's 6.50% rise.

The small-cap company has an equity capital of Rs 27.88 crore. Face value per share is Rs 10.

Denso India has received a letter from Japan-based Denso Corporation, one of the company's promoters, informing the company of its decision to voluntarily delist the company's equity shares from the stock exchanges at an indicative price of Rs 95 per share. The indicative offer price is a premium over the floor price of Rs 59.70 per share set in May this year.

In April this year, Denso Corporation, proposed to acquire up to 73.98 lakh equity shares, representing 26.54% stake held by public shareholders in the company. Later in May 2013, Denso Corporation set a floor price of Rs 59.70 each for the proposed delisting.

As on 31 March 2013, Denso Corporation held 1.33 crore equity shares, representing 47.93% of the paid-up equity share capital of the company. Total promoter holding stood at 73.47%.

Maruti Suzuki India, which is part of the promoter group, held 28.62 lakh equity shares or 10.27% stake in the company.

Denso India reported a net loss of Rs 1.30 crore in Q4 March 2013, lesser than the net loss of Rs 12.40 crore in Q4 March 2012. Net sales rose 8.46% to Rs 347.50 crore in Q4 March 2013 over Q4 March 2012.

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