Riding on divestment hopes, the scrip of oil marketing firm IBP Ltd zoomed to a 52-week high of Rs 425 today.
The IBP scrip touched an intra-day high of Rs 425 at the Bombay Stock Exchange (BSE) before cooling off to close at Rs 416.55. The volume too, was quite attractive at 11,369 for a scrip whose volume are traditionally low.
At the National Stock Exchange too, IBP scrip touched Rs 425 before closing at Rs 416.25. The volume in NSE was significantly higher at 60,115.
Analysts tracking the counter are in the opinion that IBP looks to be the brightest star among all the PSUs up for divestment. IBP has 12 suitors waiting in the wings.
Government has decided to sell 33 per cent of its 59 per cent stake in the company. This would lead to change of management and a mandatory open offer for the minority shareholder.
Analysts feel that presently the stock is undervalued and the open offer would be made at a much higher price. However, Securities and Exchange Board of India is yet to decide whether the open offer be made at selling price or at 6 months average of before the sale. The meeting is slated on November 29.
As many as 15 companies, including three oil PSUs Indian Oil Corporation (IOC), Bharat Petroleum Corp. (BPCL) Hindustan Petroleum Corporation (HPCL), domestic giants Reliance Petroleum (RPL), Essar Oil, and MNCs Shell, Totalfina-Elf had shown interest in the company. However, three companies are believed to have dropped out.
Experts believe that the reserve price for the company could be as high as Rs 1000 crore. The price bids are expected to be invited at the end-December.
The share began its steady northwards journey from September 17 onwards. At that day IBP scrip nosedived to Rs 227.05 before closing at Rs 255.65.
