CMP 65.4 BSE 17675
- In an earlier Post dtd 3/3/2012 on the Stock, I had stated the obvoius by saying that the Scrip merited a BUY with a possible 40% upside.
- Now, of course, it has become public knowledge today that eight Bids have been received for the 77% Stake that the beleaugered parent has put on the Block.
- These Bidders, for the benefit of Readers, are: PE Firms KKR, Carlyle Group, UK-based TRAVELEX along with Muthoot Finance, China's HNA Group, Bravia Capital of Hong Kong, Everstone Capital, TA Associates and Actis.
- Some reports (though denied by the Management) also suggest that the Managers of the Indian Arm may themselves be in the process of filing Counter-Bids as well - of course this may possibly be just posturing to get that additional negotiating leverage.
- Be that as it may, it is certain that there will ensue a Bidding war which could see the Stock price zoom astronomically on the Bourses.
- Therefore, even though most Analysts are loathe to give a fair price to the Scrip of anything more than 75 odd, the possibility of a Bid-off among the serious contenders could perhaps see the Stock touch dizzying levels of 100 as the drama unfolds.
- In any case the Scrip still presents a buying opportunity with good upsides over the next couple of months.
No comments:
Post a Comment