CNBC-TV18’s Executive Editor, Udayan Mukherjee - Good news (Fresenius bought 73.3% stake in Dabur Pharma for Rs 878 crore at Rs 76.50/sh; to make 20% open offer) for Dabur Pharma shareholders. It shouldn’t come as a surprise because the buzz has been doing the round for the last many weeks. So I don’t think it’s a complete surprise. The stock will move up closer to its open offer price. It’s a modest 10% odd gain above the current market price. But the key thing to note for Dabur Pharma shareholders is whether they should be tendering in this open offer or not.
 
If I were a Dabur Pharma shareholder; I would not tender at Rs 76. There is 35% non-promoter holding there, 20% belongs to institution, 15% is absolutely free float as in belonging to small shareholders. I would make them pay Rs 100 to take the stock out of my hands because Dabur Pharma is a good oncology player, very focused. It has got out of the oncology side of the business and most importantly, got a couple of very interesting Abbreviated new drug application (ANDA) approvals which are coming up which if they really work out as the company expects.

The stock could be valued far higher than it is today; part of the reason why Fresenius paying that much to buy into Dabur Pharma and in light of those triggers which could lie ahead over the next 12-24 months. My guess is that Rs 76 is not a great price to tender that stock.
 
I think if one holds on patiently more, because it’s got big European ally in place, I wouldn’t be surprised if the stock goes into triple digit quite effortlessly over a period of time and much more if indeed those ANDAs approvals materialise.
 
So short point is that it’s good for the company, good for the shareholders. The stock will move up today, I won’t be surprised if it moves beyond Rs 76 as well which is a open offer price but I wouldn’t be in a rush as a Dabur Pharma shareholders to tender it. I would make them pay more to take it because there are good things which are happening in the company.