Patni delisting gets maximum bids at Rs 520

Our Bureau Mumbai | Updated on November 14, 2017

Gets 60% response for the offer

iGate's offer to delist shares of Patni Computer System received bids for just over 60 per cent of its offer size. The maximum bids were received at Rs 520, whereas the floor price had been Rs 356.74 a share.

With the company having earlier stated that it would be comfortable with going ahead with the buyback at an offer price of Rs 450, it remains to be seen whether it would proceed with the buyback at the higher price or look for other options.

The maximum bid price was also at a premium to Patni's closing price of Rs 493.90 on BSE on Friday.

The scrip rose 1.81 per cent during the day.

The delisting carried out through the reverse book building process began on March 28 and concluded on Friday. At close, the offer had received bids for 1.62 crore shares against the 2.58 crore shares offered. Though bid prices ranged from Rs 356.74 to Rs 17,837, the maximum bids of about 1.43 crore were received at Rs 520.

“I believe iGate will agree to the price of Rs 520 a share, as that will help iGate to completely delist Patni and synchronise the business operations of the both the companies. At this price of Rs 520 a share, the total payment that needs to be made by iGate for this delisting works out to about Rs 1,394 crore,” said Mr Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities Ltd.

“However, in case iGate rejects this price of Rs 520 a share, then there is a good chance of significant correction in the stock price of Patni shares back to the pre delisting announcement level of Rs 380 a share,” he added.

The promoters owned 66.86 per cent of Patni as of December 31, 2011. US-based iGate had acquired a majority stake in Patni in 2011 for $ 1.2 billion.

Kotak Mahindra Capital Company Ltd is the manager to the offer.

Published on March 30, 2012

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