I said it is worth the bet in my previous post.
For delisting, the owner should atleast have 90% of the company's share. This is not the case with Igate which has only 80.1% currently.
But it can continue with delisting process as it is approved by the shareholders.
The floor price for the delisting process is set at Rs. 288.90/- , which is the 26 day average of high and low price. The current market price is Rs. 374/-.
As I said before, there is no ceiling price and one can bid at whatever price he likes!
The price will be decided after the Reverse book building process and it is decided by the price quoted by majority of the people much similar to IPO book building.
The management then decided to carry on or cancel the de-listing process at will after the exit price is known. If the exit price is approved, then that price will be the price at which the management buy back all the shares.
If the price you quoted is greater than exit price then yours will not be bought by the company. Any way, you can sell those shares at the exit price within 6 months to the company. If you miss that bus also, your share is less valued than a normal paper!!
If you quoted less price than the exit price, yours will also be taken at the exit price. The management can play around to get lower exit price (what you will do if you were in the management side). For this, they have exercised ESOPs, Employee shares and distributed to the employees at less than 250 according to the grades. They will be more than willing to sell at the management's disposal, say Rs. 300/-.
There will be people, who will bid way higher price as they dont want to sell igate shares and it will in turn increase the exit price. The best price is certainly above Rs. 400/- and I would expect the exit price to be greater than that mark.
You can see what is the current status during the book building process itself in NSE and then decide upon your final price as each and everyone's price matter here, but not that much.
If you have not bidded but have shares, you can also sell at exit price within 6 months.
Cheers!!! Get Ahead for Igate.