Thanks for mentioning that, Yes i did check that…However, (I may be wrong) this may not be directly resulting in this massive rerating. UTI AMC is approx 10K cr mcap today after absorbing this news and historically Tata Investment trades at 60-80% NAV discount, so a 45% stake in UTI as on today would be 4500 cr and taking 60% discount (a better case), this news should result in around maximum of 1800 cr change in mcap of Tata Investment…
However, the change we see is of approx 6000 cr in its mcap in around a month…
So yes, this news is positive indeed but looks like either this has changed the way market is looking at this holding/investment company or there is more to it…maybe more such deals or new listings possibilities etc. which we do not know yet?
Thanks again for your views…this has indeed been a good opportunity in hindsight…
Disc: Not invested, tracking since many years. Invested in some top holdings of Tata Investment. Not eligible for any recommendations
Subscribe To Our Free Newsletter |