The announcement was made before trading hours today, 5 March 2010.
Meanwhile, the BSE Sensex was up 52.17 points, or 0.30%, to 17,023.30.
On BSE, 42,168 shares were traded in the counter as against an average daily volume of 3389 shares in the past one quarter.
The stock hit a low of Rs 1150 in early trade. The stock had hit a 52-week low of Rs 457 on 13 March 2009.
The stock had outperformed the market over the past one month till 4 March 2010, soaring 27.80% compared with the Sensex's 4.60% rise. It outperformed the market in past one quarter, rising 20.69% as against 0.76% decline in the Sensex.
The small-cap engineering company has an equity capital of Rs 3.45 crore. Face value per share is Rs 10.
The current price of Rs 1243.65 discounts the company's Q3 September 2009 annualised EPS of Rs 73.04, by a PE multiple of 17.02.
The parent company, Sulzer, Switzerland, which currently holds 80% stake in the Indian arm, wants to acquire the remaining 20% holding in the company. The parent company said it may acquire the shares offered to it by other shareholders at Rs. 870 per share. This price is at 30% discount to the prevailing market price.
The parent said the 26-week average price preceding the statement is around Rs 855. The two-week average market price preceding the statement is around Rs. 792. The closing price of the stock as on 26 February 2010 was 795, the parent said.
The company's board, which met on Thursday, 4 March 2010, decided to recommend the delisting proposal to the members of the company. The company will also seek shareholders approval for the same.
The company said the acquisition and delisting will help Sulzer integrate the company into its global operations with increased operational flexibility.
Sulzer India's net profit fell 14.5% to Rs 6.30 crore on a 24.9% rise in sales to Rs 37.30 crore in Q3 September 2009 over Q3 September 2008. The company will declare its year ended December 2009 results by 31 March 2010.
Sulzer India manufactures a variety of engineering products and industrial machinery. The company's products include high pressure multi-stage air & gas compressors, mechanical solid/liquid separation equipment, separation columns & packaging for distillation absorption and mixing processing equipment. Sulzer India also manufactures textile machinery, oil refining machinery and spares.