MUMBAI, March 1: The promoters of Industrial Oxygen Company Ltd (Inox), the Jain family, is close to an agreement with the US-based Air-product to offer the latter a 51 per cent equity stake in the company. Air-product is expected to make an open offer for the public-held portion of 23 per cent at Rs 425-435 a share, which is currently quoted at Rs 176 on the Bombay Stock Exchange.Inox's managing director, PK Jain, when contacted on the developments said: ``We have talked...but I cannot comment on anything more.''Sources close to Inox said that the Jain family-who now have a 77 per cent stake in the company -- are to sell 39 per cent at Rs 425-435 a share amounting to Rs 165 crore.
Air-product, sources say, will later make an open offer for getting the target 51 per cent stake in Inox.
It was given to understand that PK Jain is not agreeable to be a minority partner in the closely held INOX, and would be more comfortable if Air-product was to pay a handsome price for the entire 77 per cent held by theJains.
The stock price movement of Inox reflects steady appreciation. It is currently quoted around Rs 176 on the BSE, up from Rs 100 in June 1997.The company-with a paid- up capital of Rs 10 crore-posted a net-profit of Rs 14.65 crore in 1996-97. In the current fiscal, Inox is expected to register a net profit of Rs 30 crore on a turnover of Rs 160 crore, say sources.
According to sources, indications are that Air-product may get only around half the public held portion of 23 per cent when its makes an open offer.
This is because Air-product, worldwide, operates through closely-held concerns.
``Air-product may opt to delist in case it gets a good response to its open offer...but given the fact that the company is expected to make substantial investments in the country, shareholders would like to hold on,'' explained sources.
Inox, promoted in 1963, is in the business of manufacturing and marketing industrial and medical gases, air-suppression plants and cylinders. The company has manufacturingfacilities at 20 locations.
The Jains are also the majority stake holders in Gujarat Florochemicals Ltd. In recent times, group concern, SMS Udyog, had been merged with Inox.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
