The Hindu Business Line : Buyback, open offer stocks sizzle amidst fizzle

A sneak peek at the returns from stocks during recent months reveal even though the market continues to hit new lows, there are stocks that have gained as much as 100-150 per cent since the March lows.

Among the BSE 500, while over 100 stocks have recorded positive returns over this period, the rest have declined.

Significant Premium

Corporate actions such as buybacks, open offers and takeover bids appear to be the major triggers for top gainers.

Spice Communication tops the list having more than doubled over this period, on the back of the company’s buyout by Idea Cellular at a significant premium to the prevailing market price.

Orchid Chemicals, in which pharma major Ranbaxy mopped up a significant equity stake, also shot up by 120 per cent.

SRF and Mastek have seen their respective companies buying back equity through the open market route.

IL&FS Investsmart, BASF, Hindustan Oil Exploration and Dabur Pharma also rose on open offer announcements.

Consolidation buzz

Such corporate actions have also sparked off consolidation buzz in sectors like pharma.

Stocks such as Lupin, Glenmark Pharma and Cadila Healthcare have been in the limelight during this period.

Predictably, the losers list is dominated by stocks from realty, finance and capital goods stocks.

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