- Alfa Laval India, part of the 125-year-old Alfa Laval Group, manufactures components and systems for heat transfer, fluid handling, and centrifugal separation. - In 2011-2012, Alfa Laval India initiated a process to delist its shares from Indian stock exchanges by acquiring a further 11.23% stake to reach 94.45% ownership. - The final buyback price of Rs. 4,000 per share valued the stock at a PE ratio of over 55 times and price to book value of 15 times. - Several other foreign-owned companies in India have promoter holdings above the new SEBI guidelines of 75% for private companies and 90% for PSU

1. DELISTING NEWS FOR
ALFA LAVAL’s INDIA
Guided by – Mr. Himal Parikh
Submitted by – Prashant Maharshi

2. ALFA LAVAL INDIA
• Overview –
Alfa Laval India (ALIL) incorporated in 1937, is engaged in
business of manufacturing and supplying of components and
systems for centrifugal separation, heat transfer and fluid
handling. Company is part of 125 year old Alfa Laval Group. In
India, company started its journey by setting up selling outlet
of Alfa Laval production.
• Financials –
Total Income - Rs. 8592.33 Million ( year ending Dec 2010)
Net Profit - Rs. 1081.21 Million ( year ending Dec 2010)

3. Offer For Delisting
• Alfa Laval India is in intention to acquire up to 2,040,202
shares, i.e. 11.23% stake in domestic entity.
• Promoters had 16,120,281 shares, i.e. 88.77% of the
companies paid up equity share capital.
• Date wise updates –
Oct 05, 2011 – Floor price of Rs. 2,045 per share.
Jan 09, 2012 – Delisting offer at a price of Rs. 2,850 per share.
Mar 05, 2012 – Maximum tender price fixed at Rs. 4,000 per
share.
Mar 31, 2012 – Promoter’s holding raised to 94.45%.
Apr 11, 2012 – Shares traded for the last time on Indian
exchanges.

4. Cont….
• At final buyback price of Rs. 4,000, Alfa Laval’s stock was
ruling at a price earnings multiple of over 55 and a price to
book value of 15.
• Public shareholders can only offer their shares to the
promoters at Rs. 4,000 per share (exit price) for a period of
one year starting from April 19, 2012.
• Companies that got delisted in 2012 –
- UTV Software Communications.
- Carol Info Service.
- Exedy India.
- Patni Computer (Announced).

5. Options left for companies…
• Following companies have promoter holding
significantly above the SEBI’s new guidelines
of 75% for private companies and 90% for the
PSUs.
• Now, with the June, 2013 deadline, these
companies would either have to dilute their
stake further or go with the delisting as the
Alfa Laval way.

6. Cont…

7. MNCs..
Company Name Promoter Holding (%)
• Astrazeneca Pharma 90.00
• BOC India 89.48
• Gillette India 88.76
• Elantas Beck India 88.55
• Kennametal India 88.16
• Saint-Gobain Sekurit India 85.77

8. PSU..
Company Name Promoter Holding (%)
• MMTC 99.33
• HMT 98.88
• Fertilizers & Chemicals Travancore 98.56
• National Fertilizers 97.64
• Neyveli Lignite Corp. 93.56
• Andrew Yule & Company 93.30

9. Ongoing issue related to listings..
• Share of two companies – MT Educare and
NBCC got listed on April 12, 2012.
• Both issues were given a rating of 4 on 5.
• Looking at the data, markets have reacted
very differently towards this companies since
the day of their listing. * As on April 18, 2012.
Company Allotment Price Listing Current Price * Gains
MT Educare 80 86 113 41.25%
NBCC 106 97 98 -7.55%

10. Thank You…