No.
If the bank would have proposed the price higher than the CMP, wouldn’t the holding co. hv bought the shares directly from the mkt??
Remember this for this case nd also for any further equity deals(like OFS) u study, the issue price will always be at a discount to mkt price, else wouldn’t the transaction make sense at mkt price itself. Evry seller aspires cheapest price, every buyer wants highest price – Fair settlements happen at reasonable price.
The value unlocking is to happen at IDFC holding co. level. U can go thru the IDFC thread for more details. To summarize, the reverse merger is to happen bcoz of regulatory reqmt to bring Bank promoter holding below a certain limit after 5 yrs
The only good frm Bank perspective is that once the merger overhang gets over, the stock can get re-rated.
Although initially, thr maybe sm selling pressure wid arbitraguers selling out.
Disclosure :- Invested in IDFC
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