UTV Software delisting: Analysts say offer price is fair
Analysts consider Walt Disney's open offer price to UTV Software Communications to be fair and retail investors should also participate in the delisting.
- (1888PressRelease) January 16, 2012 - With the script of UTV Software Communications closing above Walt Disney's open offer price band on the exchanges on Wednesday, shareholders are expecting the promoters to offer a higher price for delisting.
This comes after US-based Walt Disney's recent announcement of an open offer between January 16 and January 20, to delist 1.22 crore shares, which represent 29.96 per cent of UTV Software Communications' equity.
On Wednesday, UTV Software Communications shares closed at Rs 1,019.65 (down 1.54 per cent) on the BSE.
During intra-day trade the stock touched a high of Rs 1,040.
The stock is trading above the proposed open offer price that has been fixed between Rs 835.03 and Rs 1,000 a share.
HIGHER VALUATION
The stock commands a higher valuation than other media stocks, said analysts.
They are of the opinion that the offer price is fair and retail investors should participate in the delisting.
"At this point of time, my advice to investors is that they should sell their shares at the offered price and re-enter the stock markets to book profits," said Mr Harish Vasudevan, Strategist, SVS Securities.
But the analysts say they would not be surprised at a revision in the open offer price.
Following the announcement of Alfa Laval India hiking their delisting offer price, shareholders are hoping for another case of revision of delisting offer price for UTV Software Communications too.
Analysts expect the revised price (if any) to be close to Rs 1,100 a share.
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