HAIL drops 27.16% in three days as foreign promoter to dilute stake

Honeywell Automation India lost 3.54% to Rs 2415 at 09:59 IST on BSE, extending two-day slide triggered after its foreign promoter said it intends to pare its stake in Indian unit to comply with the listing clause

Meanwhile, the BSE Sensex was up 71.37 points or 0.39% to 18,531.75
On BSE, 31,705 shares were traded in the counter as against the average daily volume of 4,259 shares in the past one quarter.

The stock high a high of Rs 2500 and a low of Rs 2327.85 so far during the day. The stock had hit a record high of Rs 3391.80 on Monday, 19 November 2012. The stock had hit a 52-week low of Rs 1620 on 15 December 2011.
The stock underperformed the market over the past one month till 21 November 2012, falling 6.14% compared with the Sensex's 1.19% fall. The scrip had also underperformed the market in past one quarter, rising 2.25% as against Sensex's 3.22% rise.
The company has an equity capital of Rs 8.84 crore. Face value per share is Rs 10.
Shares of Honeywell Automation India (HAIL) dropped 27.16% in three trading days from Rs 3315.70 on 19 November 2012. The HAIL stock lost 20% to Rs 2503.55 on Wednesday, 21 November 2012 after the company during market hours said its foreign promoter Honeywell Asia Pacific Inc. intends to reduce in due course its shareholding in HAIL in one or more tranches through the Offer for Sale mechanism through a separate window provided by the stock exchanges for this purpose.
Honeywell Asia Pacific Inc. will reduce its stake in HAIL with the sole purpose of meeting the minimum public shareholding rule. Under the Securities Contracts (Regulation) Rules, 1957, private-sector companies must increase public shareholding to at least 25% by 3 June 2013, while the deadline for state-run firms is 13 August 2013.
As per shareholding pattern as at 30 September 2012, Honeywell Asia Pacific Inc. held 81.24% stake in HAIL and public shareholding was 18.76%.
Shares of HAIL had rallied 16% to Rs 3315.70 after scaling a record high of Rs 3391.80 in intraday trade on Monday, 19 November 2012 on reports parent firm is considering delisting of its Indian unit from stock exchanges.
However, during market hours on Monday, 19 November 2012, HAIL clarified that "we do not comment on market speculation. The news item is clearly speculative and incorrect in nature and they have not accounted for the official statement from Honeywell." The HAIL stock lost 5.62% to Rs 3129.40 on Tuesday, 20 November 2012.
HAIL's net profit rose 34.9% to Rs 21.16 crore on 1% fall in net sales to Rs 407.85 crore in Q2 September 2012 over Q2 September 2011.
HAIL supplies industrial automation and control solutions to the petrochemicals, refining, oil and gas, mining, metal and power industries.

Posted in: HONAUT