Business Daily from THE HINDU group of publications
Wednesday, Dec 05, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Dec 05, 2007 ePaper | Mobile/PDA Version |
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Stocks Info-Tech - Software Good exit price for iGate de-listing
BL Research Bureau The “discovered price” of Rs 410 for iGate Global Solutions’ de-listing offer, announced on Tuesday, should support the company’s stock price at current levels in the near term. The price discovered through the reverse book-building process has turned out to be at a significant premium of 42 per cent to the minimum (floor) price of Rs 288 that had been set by the company for the book-built offer. Sharp ReversalInvestors in iGate can now hope to exit their stock at this discovered price of Rs 410, and the stock price may hold up at close to these levels until the de-listing process is complete. Had the discovered price from the reverse book building process been closer to the floor price, the stock may have suffered a sharp reversal from its current price of about Rs 395. The markets seem to have built in expectations for a significant premium on the de-listing offer, as iGate’s stock has climbed quite sharply from the time the company first announced its intention to de-list from the Indian exchanges. US SlowdownFrom hovering at Rs 260 levels when the first announcement was made in early October, the stock has gained nearly 52 per cent till date. This, in a scenario where second tier IT stocks have suffered a sharp decline in prices as well as PE multiples, on worries about a US slowdown and sub-prime issues hurting earnings. More Stories on : Stocks | Software
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