Financial Daily from THE HINDU group of publications
Friday, Jan 28, 2005
Financial Daily from THE HINDU group of publications Friday, Jan 28, 2005 |
|
|
|
|
|
Opinion
-
Letters BPCL/KRL merger
The merger scheme announced for BPCL and Kochi Refineries Ltd (KRL) is the unkindest cut of all. The KRL market price did not actually move up in line with the rest of the standalone refineries because of the merger talk and now the axe has fallen. On various parameters such as earnings, book value, dividend payout, and even growth potential, KRL deserves a minimum valuation of 7:10 and not the current 4:9.Taking into account the high/low of the year also, it can fetch a higher ratio. The KRL price would have kept pace with the other refiners had the merger proposal not been on. The other major stakeholders such as MFs/FIIs and the KSIDC should demand a higher swap or vote this out when called for. The shareholders should also demand a higher valuation for KRL.
P. Sreekumar Kochi
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|