AP Paper had recently come up with an open offer at Rs 544 but there was a non-compete fee to the promoters of Rs 130. This fee is generally paid by an acquirer to ensure that the former promoter of the company does not compete directly in the same line of business for a specified period of time. SEBI has now directed the company to add the non-compete fee for retail investors as well. Will investors get lucky? Not quite, says Jagannadham Thununguntla, head of research, SMC Global.
Speaking to CNBC-TV18, he says that there is every possibility of the AP Paper issue going the Mudra Lifestyle way where only the promoters got a higher share. Investors will be better off thinking there will not be a non-compete fee, he opines.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
