SP Tulsian of sptulsian.com told CNBC-TV18, "The whole deal or the corporate development, which has happened in Mahindra Forgings, the Mahindra Group which is holding 52.7 percent stake, 4.8 crore shares is selling to CIE Automotive at Rs 81. And because of that the open offer is now coming for 26 percent stake at Rs 81. And in all eventuality, there are no possibilities of share going beyond Rs 81."
He further added, "When we have a float of about 48 percent and we are having the open offer of about 26 percent, about 60 percent of the shares are likely to get accepted. After the open offer, it is expected that share probably would settle at about Rs 50-55 that could be the range."
"However, now the whole question is that when all the permissions will come for this stake sell, which will enable the open offer to open. In my view that will take about four months time. So next three-four months, I do not see share moving beyond Rs 70. That is one possibility."
"If one has a longer-term horizon, doesn't want to book losses then he/she can remain invested with a view to see an effective price of maybe about Rs 70 or so. So beyond that one should not expect much from this stock," Tulsian said. Also Read: Mahindra Ugine, Forgings hit 52-wk high on deal with CIE
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