The Hindu Business Line : BOC India jumps on pref issue to Linde AG

Kolkata, Dec. 11 BOC India is letting its promoters – the Linde AG group – to raise their stake to 73.99 per cent from the current level of 54.8 per cent through fresh preferential issue of 3.62 crore equity shares in the company of Rs 10 at a price of Rs 165 per share. The current holding of the German industrial gas major in BoC India is through BOC Group Plc of the UK, which it acquired in 2006.

The issue of shares would represent 42.45 per cent of the total post issue paid-up equity share capital of the company on a fully diluted basis. Post-issue, the authorised share capital of the company would need up scaling.

Authorised capital

BOC has proposed to increase the authorised share capital from Rs 60 crore to Rs 86 crore divided into 8.60 crore equity shares of Rs 10 each through an amendment in the memorandum and articles of association of the company. An EGM for discussing the proposals has been scheduled on January 5, 2008.

The present move would place the German company’s stake shade below the SEBI required holding ceiling of 75 per cent for promoters and lend Linde’s a strangle hold on BOC India, which is in an expansion mode as demand growth for industrial gases soars in the country.

Linde AG has to come out with an open offer for 20 per cent stake after this fresh issue, under the SEBI guidelines.

Accounting year

In the last AGM on July 31 this year, shareholders accorded borrowing authority of Rs 750 crore to the board.

BOC India has also changed its accounting year from April-March to calendar year with a view to align the same with that of its parent company. The current accounting year of the company has been fixed for a period of 9 months beginning April 2007 and ending on December 31, 2007.

BOC is also setting up a merchant air separation unit in Himachal Pradesh as a part of its growth strategy to enter the northern region. The new unit is to be commissioned in mid 2009.

The BOC India stock reacted positively to the development and closed almost 10 per cent up at Rs 175 with surge in traded quantity.

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