HNIs buy Honeywell Automation auto shares on delisting report

High net worth investors are accumulating Honeywell Automation amid speculation its US-based parent is considering delisting the company from the Indian bourses.

The parent holds 81.2% stake in the company.

Talk of delisting in Honeywell and some other companies of foreign parentage gathered momentum after Alfa Laval announced a whopping Rs 4,000 per share delisting price on Monday.

In a weak market, Honeywell shares surged 3.7% to Rs 3,099.85 amid high volumes.

As per regulations, global parents will have to reduce stake to below 75% if they fail to delist their Indian units before June 3, 2013.