A PE firm (KKR) bought JB Chem from its erstwhile Indian promoters some 4 years back and the company got rerated like wow…
In GLS case the high promoter holding makes the threat of upside capping for minority investors should the new promoters opt for a delisting … There is a rule in sebi which compels someone who buys beyond a certain threshold to also announce open offer… the resulting minority stake post this offer may become even more redundant as to vote against any delisting proposal… This could be Nirma’s thought process given that they delisted some years back…
Still some room may be left for a quick upside as the deal finalizes keeping in mind the issue price of GLS when IPO happened and a possibility that current promoters would atleast settle for something in that range/above that to give up their stake …
A PE fund (Sekhmet) could persuade Glenmark to only sell controling stake and remain invested being non promoter minority stakeholders, then a growth story from long term perspective is a possibility…
If KKR (whose name was also mentioned in the first leak of prospective suitors) or similar PE fund scoops it up, it would be a compelling proposition for long term investing…
That’s my 2 cents, purely speculative.
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