Heard on the Street- Honda Siel takes off on delisting buzz

Shares Of Honda Siel were among the star performers in Friday���s volatile session, gaining over 6% to end the day at Rs 153.20. Dealers say the rally was fuelled by market talks that the company���s promoters, (Honda Motor Company, Japan) may buy out the minority shareholders and delist the company.

An e-mail sent to the company remained unanswered till the time of going to press. Analysts tracking the counter say post-delisting, the company plans to double its capacity from the current 1.75 lakh units to 3.50 lakh units. Honda Siel is a debt-free company, with earnings per share of Rs 24.38 for financial year 2007-08, and having cash worth Rs 125 per share.

The company in August 2008 decided to shift its manufacturing facility from Rudrapur (HP) to its main facility at Noida, to save on costs. As such, the company���s vacant land at Rudrapur is said to be on the block. People familiar with the development said that given that it is a tax-free zone, the company is getting offers of up to Rs 60 crore for the land.

Honda Siel Power Products (HSPP), formerly known as Shriram Honda Power Equipment, is a JV between Honda Motor Co. Japan and Siel, with 67% held by Honda Motor Co. Japan. It makes portable generators,
water pumping sets and general purpose engines.