Pipavav on Lower Circuit Rs 68.85 despite or because Anil Ambani taking over !?
Pipavav under CDR with Heavy Debt,Huge Capacities but Few Orders to serve the Debt was up for sale and Mahindras & Munjals were interested if there was Debt Restructuring
However listed Reliance Infra & it’s unlisted Reliance Defence of Anil Ambani has bought out most of Pipavav Promoter’s Stake at Rs 63 and will make an open offer to Other Shareholders for another 26% at Rs 66
This announcement was made post market hours yesterday
Pipavav which was hovering in the mid 70’s for a week opened this morning down 10% on the lower circuit at Rs 68.85 on both NSE & BSE
Is this because the Buyout & Offer Price was lower that yesterday’s closing of Rs 76.45 !?
This could be one reason…..but think about this ….after the Reliance Power IPO and post IPO mess up where Shareholder Wealth has been destroyed in the past five years Anil Ambani had eroded a lot of his market credibility ~ Reliance Power is currently down at just Rs 60 from an IPO Price of Rs 450 which adjusts to @ Rs 270 after a Bonus from Premium collected to appease IPO Allotees !
This begs the question…can Anil Ambani redeem himself with Pipavav Defence even as his Power Company is Powerless yet in a sense ! ~ Market is ruthless and has given a huge thumbs down today !
Contrast this with the entry of Sun Pharma’s Dilip Shanghavi in Suzlon at Rs 18 last month with an Open Offer to coming at this price ~ Suzlon raced away over Rs 25 on this announcement !
Incidentally after Sun Pharma Price shot up yesterday,Dilip Shanghvi (US $ 21+ billion) overtook Mukesh Ambani (US $ 20+ billion as the Richest Indian
Don’t you wish even Dilip got into Defence ! 🙂
So which Anil Ambani Company now do you prefer at Rs 60 to Rs 70 ! ~ Reliance Power or Pipavav ! ?