Mumbai: GE Capital (Mauritius) Investment Company Ltd has offered to acquire all outstanding shares of GE Capital Transportation Financial Services Ltd, which it proposes to delist from the capital markets in India.

GE Capital, which holds 77.33 per cent of the fully paid-up share capital of the company as of date, will acquire the remaining equity shares pursuant to the Securities & Exchange Board of India (Delisting of Securities) Guidelines, 2003, JM Financial Consultants Pvt Ltd, manager to the offer, said in a filing with the Bombay Stock Exchange.

GE Capital has made an offer to the public shareholders of GE Capital Transportation Financial Services Ltd to acquire up to 45,94,761 fully paid-up equity shares of the company with face value of Rs 10 each, representing approximately 22.67 per cent of the fully paid-up share capital of the company. Consequently, GE Capital will delist the equity shares.

GE Capital expects delisting price of Rs110 per share for the company, reports CNBC-TV18.

G E Capital Transportation Financial Services was quoting at Rs108.70, up Rs5.15 in early morning trade. The scrip touched an intraday high of Rs108.70 and an intraday low of Rs105.

There were pending buy orders of 10,928 shares, with no sellers available. It was trading with volumes of 24,900 shares. On Friday, the share closed up at Rs103.55.

The board of directors of GE Capital has, in its resolution dated 27 June, had approved a voluntary delisting of the company, in accordance with the SEBI guidelines, to enhance the operational flexibility of the company and as part of its overall strategic decision to consolidate.

The board had already received shareholders approval for a voluntary delisting of the equity shares of the company from BSE by means of a postal ballot, the results of which were declared on 31 July 2008.

The SEBI guidelines require determination of ''floor price" for the equity shares to be acquired pursuant to the reverse book building process, which stands at Rs66.80 per share.

The floor price is the average of the weekly high and low of closing prices on BSE during the 26 weeks preceding the date of the public announcement.

GECTFSL`s earnings have been under pressure over the past couple of years owing to compression of interest margins. The company had come under the purview of the RBI guidelines for NBFC-SI's under which a minimum capital adequacy ratio of 10 per cent is required to be maintained.

While these guidelines came into effect from 31 March 2007, the RBI had given the company an extension till 31 March 2008 to achieve compliance.

GECTFSL is in the process of augmenting its equity base through a proposed equity rights issue, which is expected before the end of the financial year.