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ABB is joining the list of companies in which the foreign parent is hiking the equity stake. Swiss-based parent firm of ABB Ltd has made an open offer to raise its stake in its Indian unit by acquiring an additional 23 per cent stake from the public shareholders for Rs 4,366 crore. Following the acquisition ABB Asea Brown Boveri's holding in the Indian firm would go up to 75 per cent from the existing 52.11 per cent after acquiring shares worth Rs 4,400 crore ($ 965 million).When the Swiss parent's offer hit the market, shares of ABB soared nearly 30 per cent and touched an intra-day high of Rs 869. The stock finally closed with a gain of 23.44 per cent at Rs 831.45 on the Bombay Stock Exchange.In a filing to the Bombay Stock Exchange, it said that ABB Asea Brown Boveri would acquire 4,85,10,997 shares, representing 22.89 per cent stake in its Indian arm, for Rs 900 a share, aggregating to Rs 4,365.98 crore. The offer would open on July 8 and would close on July 27, the company said. As on December shareholding pattern, the promoters of ABB Ltd held 52.11 per cent stake in the company."The aim of the investment is to facilitate the long-term development of ABB's business in India," the Swiss company said in a statement. The offer represents a premium of approximately 34 percent of Friday's closing price and 14 per cent over the mandatory floor price required under Indian regulations. "The potential total value of the transaction at the offer price is approximately Rs 4,400 crore ($965 million)," it said.In 2009, ABB Limited India reported revenues of Rs 6300 crore ($1.4 billion) and profit before tax of Rs 530 crore ($117 million). The company employs approximately 6,200 people. The open offer will be managed by HSBCSecurities and Capital Markets (India) Private Limited.
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