Reliance Capital deal looks positive for stock, says Dipan Mehta, Member- BSE/ NSE.
Mehta told CNBC-TV18, "Reliance Capital deal is positive and this put the entire company in terms of what the value or the businesses can be. It gives an indicator of what the various businesses could really be worth and then translating that into the stock price, certainly positive for the company."
He further added, "What is required is the kind of positive news flow for the entire ADAG group stocks because they have been beaten down or they are trading below their book values. As and when we see that money is coming into the companies and to the group either through sale of such minority stake or through sale of other businesses to that extent confidence will get build into them because by and large these are high growth businesses but it is just that the group per se took too much on their plate and took on far too much debt than they could handle. We had a classic down turn in the international markets, international economy as well as domestic economy which is why they are in a bit of a debt trap at present. Markets like these if they remain as they are for the next 3 to 6 months will give the opportunity to deleverage various group companies as well as the group as a whole. My sense is that it is positive and it gives a thumps up to the entire group, the businesses they have are still quite valuable and there is appetite and interest for investors for investing directly and indirectly in them."
