Linde Shareholders Reject Proposal to Enter Rs 417 Billion Repurchase Transactions with Praxair

Linde India Shareholders Reject Related Party Transactions Proposal

Key Highlights

• Linde India minority shareholders have rejected a proposal to enter related party transactions (RPTs) worth Rs 417 crore with affiliate Praxair.
• The proposal was defeated with 89% of minority investors voting against it, with 100% opposition from retail investors.
• Linde India's promoter group owns 75% of the stake, while retail investors hold more than 60,000 shares.

Background

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• Linde India and Praxair underwent a global merger in 2018, following which they entered a joint venture.
• Linde India initiated "business allocation protocols" to allocate business to Praxair, sparking allegations of transferring high-growth business segments without proper minority shareholder approval.

Significance

• This is the second time in recent past that Linde India has faced minority shareholder opposition, following a proposal to extend the tenure of its India managing director in February 2023.
• The rejection highlights concerns over related party transactions and the need for transparency and accountability in corporate dealings.