SP Tulsian of sptulsian.com told CNBC-TV18, "I will advise holding United Spirits (USL) because the process of Diageo acquiring stake in the company has started. Initially, there was very tepid response. Practically, I would say that the open offer which was made by Diageo was just a formality."
"But now, they are likely to acquire 15-16 percent stake held by the UB Group in the company apart from that 10 percent preferential allotment that has also been made recently and the Karnataka High Court has allowed UB Holdings, an investment arm or the promoter company of USL to sell shares to Diageo," Tulsian further added. He also said, "Once the process of Diageo coming in into the company starts, they will be acquiring 25-26 percent stake. Additionally, they will be acquiring 5 percent stake via creeping acquisition route from the market every year. If you see the float – that is very low because close to 50 percent stake is held by the foreign institutional investors (FIIs) and those FIIs are not going to sell the stocks." "If you take the situation going forward with very low float available and with any kind of stake buying which we have in fact seen happening in the last may be couple of weeks can also make the stocks to move. For a time horizon of six months to one year, one can expect target of Rs 3,000 on the stock."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!
