Crisil scrip zooms past S&P open offer price

Driven by offer revision buzz

The share price of Crisil has shot past the open offer price made by global ratings firm, Standard & Poor's (S&P). The scrip closed at Rs 702 on Thursday on the Bombay Stock Exchange, 3.23 per cent higher than the open offer price of Rs 680.

Stock market sources said the stock, which was hovering well below the offer price for over a month, has started going up on the expectations that S&P would revise the price.

A source close to the offer pointed out that the sudden spurt in Crisil price and volumes indicates that speculators are "working overtime" at the counter.

He said S&P's offer is subject to receiving subscription of a minimum of 41.5 per cent of Crisil's total paid-up equity shares. The open offer would fail if the total subscription is below the minimum 41.5 per cent and also result in the stock prices falling drastically.

The US-based The McGraw Hill Companies, of which S&P is a division, and its wholly owned subsidiary, S&P India LLC, have made the voluntary conditional open offer to the shareholders of Crisil. Standard & Poor's International Ratings LLC already holds a 9.45 per cent stake in Crisil.

Crisil shares witnessed very few trades in March. On March 31, 2005, trading volume in Crisil was just 431 shares and the stock had closed at Rs 678.80 after opening at Rs 666. During the last few trading sessions, the stock has moved up sharply.

The scrip has gained 3.42 per cent since March 31. On April 5, the stock opened at Rs 691.95 and closed at Rs 694.55 and the trading volume was 2,627 shares. Yesterday, it reached a 52-week high of Rs 720.

The last date for price revision is April 11 and the offer will close on April 25. Public holding in Crisil is 25.92 per cent, of which 14.30 stake is held by stock broker Rakesh Jhunjhunwala and his wife.

Jhunjhunwala said the market price is an indicator that the offer price needs to be revised upwards.

He, however, is yet to make up his mind on whether to subscribe to the offer. "I am yet to decide on whether to subscribe to the offer. I may continue to hold the shares even if there is a revision in the offer price," he said.