Prakash Diwan of Altamount Capital Management told CNBC-TV18, "I would touch Suzlon Energy and Pipavav Defence. Disclosure is, I have exposure to Suzlon at least. Very clearly it is a company that could breathe into. The best part is the positivity around it; everybody is going to support it. State Bank of India (SBI) gets Rs 6000 crore off and that itself is big. The day results were announced, people thought it were great numbers that SBI went up 6 percent but it was also on the back of this news that Rs 6000 crore is going to released from the Suzlon debt. So, these are very positive things."
"It makes a lot of sense for anybody who has got capital to revive this business because it is one of the best placed businesses given the government’s focus on reviving them. The rest all plays put together might not add up to the capacity that Suzlon has on the wind energy side. So, it is great news but the dynamics and the open offer will take time to settle down. According to me Rs 18 is just the start; I don’t see revisions come up," he said.
"It is the same story with Pipavav Defence. It is one of the most established businesses. It would take about 4-5 years to set that kind of a base up. So, a group like Mahindra and Mahindra which has always been very focused onto defence has to get into it and at some stage will find it cheap to grow inorganically rather than spend too much of time. So, they have the capabilities to scale up which SKIL is struggling with for whatever reasons. So, it is a great combination out there as well."
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