SP Tulsian, sptulsian.com feels that Ispat Industries may slide to Rs 19.50-20.
Tulsian told CNBC-TV18, "No, I don't think there are any hopes for Ispat shareholders because they have already seen the open offer price getting announced. Maybe in my view, this will fall to around Rs 20 levels and maybe even slide to Rs 19.50-20. You don't have any sweetener in the open offer. The company is going to remain standalone maybe for a brief period of about six-eight months or six-12 months, till all the formalities of the smooth transition from the Mittals to the Jindals happen. Whatever arrangements we have been seeing of the Mittals continuing for 18 months as executive vice chairman is just an interim arrangement."
He further added, "If one ultimately takes a call of getting this company merged with JSW Steel, you have all your upsides getting capped. In such events, we don't see that the company which is likely to get acquired remains to have any upside seen. Taking all these into consideration, I don't think there is any point in remaining invested in Ispat Industries. One should not even wait for the open offer to participate in. Instead, a wise move will be to liquidate the holdings whatever one has in the secondary market."
