Manufacturer of mass transfer devices Sulzer India has taken a major step to delist itself by buying the left over 20 percent stake in itself. Sulzer India's board has approved the proposal of the board to buy the remaining stake.

Just minutes after the news hit the markets, the shares of Sulzer India, soared up by 20 percent at Rs. 1243.65 on the BSE, thereby hitting the upper circuit.

The parent company has 80 percent stake currently in the Indian arm. The company will be acquiring the remaining 20 percent at a price of Rs. 870 per share about 40 percent lower than the market price. Sulzer could also look at the probabilities of delisting the shares from the Bombay Stock exchange.

The company wanted to integrate the company to the global economy in a much better manner; the company's global operations will now be able to function with increased operational flexibility after the delisting and acquisition. The company believes that the proposal is in favor of the public shareholders as this will now give them a chance to exit the stock.

However, considering the higher valuation of the stock in the markets, it might be difficult for the company to acquire the remaining stake at Rs 870 per share.