Ingersoll surges on hopes of attractive buyback pricing

The $2-billion buyout package announced by the board of US-based Ingersoll-Rand Plc, the parent company of industry machinery manufacturer Ingersoll Rand, has prompted investors to believe that foreign promoters will offer attractive price to buy back the Indian company's shares.

Ingersoll Rand India has already received the board's approval to acquire its shares from the minority shareholders and brokers expect that the latter will be offered exit at a substantial premium to the market price. Shares of Ingersoll-Rand India closed 8% higher at 511.60 on BSE on Friday.

The counter attracted significantly higher volumes as over 3.4-lakh shares changed hands, compared with the two-week average of 12,000 shares on the exchange. With a holding of 74%, analysts believe the foreign parents will eventually go for delisting of the shares from stock exchanges, the route adopted by many MNCs in the past.

(Contributed by Shailesh Menon)