Well, it is proved time and again that it always pays to stay with the Blue Chips.
L&T Finance Holdings surged over 16 per cent in ‘Moorat Trade’ today to hit its 52-week high of Rs 83.55. What caused the euphoria was the news that L&T Finance Holdings intends to issue Unsecured, Redeemable, Non- Convertible Debentures aggregating to Rs. 325 crore, on private placement basis.
There are also rumors floating around that L&T Finance & Holding may merge with City Union Bank and acquire a banking licence indirectly. Earlier, there was news that L&T Finance Holdings would buy over Pantaloon Retail’s stake in Future Generali Insurance Company. However, L&T Finance Holdings issued a categoric denial.
L&T Finance Holdings have earned a fabulous 68% return on their investment on a YTD basis.
United Breweries was the other star of the session, surging 15%. What caused the surge? There seems to be no apparent reason other than to give company to its sibling United Spirits which spurted a phenomenal 35% yesterday in the wake of the announcement that Diageo would acquire a 27.4% stake in United Spirits.
Meanwhile Kingfisher is like a coiled spring waiting for news that Vijay Mallya has prepared the revival plan. Once that happens, there will be no stopping Kingfisher Airlines!