BOC India vaults on buzz of hike in open offer price

BOC India surged 20% to Rs 196.70 at 12:25 IST on BSE on reports BOC Group plc UK, a part of the Linde Group, has increased open offer price for minority shareholders to Rs 200 per share from the earlier Rs 165 per share.

BOC India had touched a high of Rs 196.70 and a low of Rs 190 so far during the day. It had touched 52-week high of Rs 233 on 2 January 2008 and 52-week low of Rs 120 on 10 August 2007.

The company’s equity capital is Rs 85.28 crore. The face value per share is Rs 10 each.

At the current price of Rs 196.70, the scrip trades at a PE multiple of 16.27, based on Q1 March 2008 annualised EPS of Rs 12.09.

In December 2007, BOC India approved preferential allotment of 3.62 crore shares at Rs 165 per share to promoter and/or wholly-owned subsidiaries for raising Rs 597 crore. Post the preferential issue to the allottees, the aggregate shareholding of the promoter group has increased to 73.99% from 54.80% (as at end March 2008).

Subsequently on 22 January 2008, The BOC Group plc announced an open offer for 20% at a price of Rs 165 per share to minority shareholders, as per Sebi guidelines. On 9 June 2008, the offer schedule was revised, with 11 June 2008 being the opening date and 30 June 2008, the closing date. As per the original schedule, the offer was to open on 14 March 2008 and close on 2 April 2008.

BOC India, formerly known as Indian Oxygen, has two divisions namely the gases division and the project engineering division. The gases division contributes majority of the turnover.

BOC India reported 5161.20% spurt in net profit to Rs 25.78 crore on 21.80% rise in net sales to Rs 131.12 crore in Q1 March 2008 over Q1 March 2007. Other income surged 264.9% to Rs 13.94 crore in Q1 March 2008 over Q1 March 2007.