Honeywell Automation tanks on promoter stake sale plans

The company is required to increase its public shareholding to at least 25% by June 2013.

Honeywell Automation India Limited (HAIL) has tanked 18% to Rs 2,555 after the parent company denied delisting plans and said that the promoter will reduce their stake through an offer for sale.

“This is to inform you that, subject to relevant regulatory approvals and market conditions, and in order to comply with the minimum public shareholding requirement of 25% in terms of Securities Contracts (Regulations) Rules, Honeywell Asia Pacific Inc., intends to reduce, in due course, its shareholding in HAIL through an ‘offer for sale’ on the stock exchanges in one or more tranches,” HAIL said in a statement.

Honeywell Asia Pacific Inc, which holds 81.24% stake in HAIL, is required to decrease its shareholding to at least 75% by June 3, 2013.

 

The stock opened at Rs 3,150 and touched low of Rs 2,525 on the BSE. A combined 206,088 shares have changed hands on the counter so far on both the exchanges.