Shares of Honeywell Automation India today tanked by a whopping 20 per cent, eroding Rs 510 crore from its market capitalisation, after Honeywell Asia Pacific said it intends to reduce its stake in the company.
In a regulatory filing, Honeywell Automation said that Honeywell Asia Pacific intends to reduce in due course its shareholding in the company through an 'offers for sale' on the stock exchanges in one or more tranches in accordance with Sebi regulations.
This is in order to comply with the minimum public shareholding requirement of 25 per cent in terms of Securities Contracts Regulations Rules (SCRR) and will be subject to receipt of relevant regulatory approvals and market conditions.
Under the SCRR Rules, Honeywell Automation India is required to increase its public shareholding to at least 25 per cent by June 3, 2013. The current public shareholding of HAIL is 18.76 per cent.
Reacting to the development, shares of the company today fell by as much as 20 per cent to touch its lower circuit limit of Rs 2,503.55. The stock had seen a 52-week high level of 3,391.80 on November 19.
During the day the market capitalisation of the company declined by Rs 510 crore to Rs 2,213 crore.
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