US listed software company iGate Solutions which acquired India's Patni Computers in January 2011 has decided to delist its Indian subsidiary from stock exchanges by buying shares from the company's public shareholders.
The scrip of Patni Computers gained over the news. On BSE, the stock was seen up by 9.35% or 36.35 points at Rs 425.
The company has kept a floor price of Rs 356.74 per ordinary share, which will be the minimum level at which shares have to be purchased. The price has been determined as per the delisting regulations, the company said in a statement.
The process would also delist the American Depository Receipts (ADRs) from the New York Stock Exchange.
The company plans to complete delisting process by mid-2012.
Following the process, the shares of the company would be delisted from both the BSE and the NSE.
At present, iGate holds 82% stake in Patni, with this process the US subsidiary will gain full ownership of Patni.
The purchase of outstanding equity shares held by public shareholders in Company would be done in accordance to the Securities Exchange Board of India (SEBI) delisting regulations at a price determined through the reverse book building process, the company stated in the statement.