UPDATE 1-ABB aims to raise Indian unit stake to 75 pct

* Offer the shareholders of ABB Limited, 34 per cent quality

* Shares in ABB falls 2.5 percent, the running index

* Shares of ABB Ltd India jumps 22.5 percent

ABB plans to increase its stake in Indian supplementary in an agreement worth up to $ 965 000 000, a move that will make stronger its position in the rapidly growing Indian market. Seller of power gear, energy and oil and Gas Company, said Monday it planned to increase its stake to 75 percent from 52 percent and offered shareholders 900 rupees ($ 19.7) per share - a premium of around 34 percent to Friday's final price. The news lifted shares of ABB Ltd India rose 22.5 percent, but shares in ABB slipped 1.6 percent in 0903 GMT, underperforming the STOXX 600 Industrial Goods and Services index, and some analysts say that the accord was fairly expensive. "ABB will pay three times the sales for the greater than before interest in India, which is not cheap, but probably justified by its growth potential," Julius Baer said in a report. The Swiss Group tapped its war chest earlier this month to buy U.S.

Analysts have been surveillance the company closely over the past year to see how it will use its cash pile of more than $ 7 billion.

Vontobel psychoanalyst Fabian Haecki said ABB had a realistic chance of getting the shares offered will have 34 percent premium, said the business makes sense.

"We believe the Indian market is of great planned importance to ABB supplied its superior secular growth opportunity," said Haecki said in a note.

ABB India, had sales of $ 14,00000000 and profit before tax of $ 117 million in 2009, says ABB.

The open offer will be manage by HSBC Securities and Capital Markets (Indian) Private Limited. The offer is predictable to start on July 8 and ends on 27 July, while the payment for the shares is predictable to take place on 10 August said ABB.