Phani Sekhar, Fund Manager of Angel Broking told CNBC-TV18, "Kalindee Rail Nirman's (Engineers) price movement that one sees today is at least sensible because with that allotment to Texmaco Rail and Engineering, I do not think the open offer would have been triggered. To that extent, I think belatedly investors realize that there was not much gain in holding on to Kalindee Rail Nirman (Engineers) because the core business still struggles and the important part of this deal if one was to look at will be the only synergy between Texmaco Rail and Engineering and Kalindee Rail Nirman (Engineers) if this deal were to materialize."
"Other than that, there is nothing material in this deal because the railway capex story is something that we have been hearing for the last ten years and it simply remains on paper. Considering the balance sheet of Kalindee Rail and the shareholding pattern, it was always a very attractive candidate for takeover but being very small I think it did not make sense for larger infrastructure firms," he added.
"Now with the voluntary stake sale to Texmaco Rail, there will be some stability in the company but since the overall fundamentals still continue to be very poor and valuations are not very attractive, my advise would be to book profits."