Piramal Entp makes the right call!

Piramal Enterprises is buzzing loud and strong today. The stock which had closed at Rs.555.55, today morning opened at Rs.580 and went on to hit an intra day high at Rs.605. It is currently at Rs.570, up over 2.5%. Volumes are up almost 12 times.

The stock is up as the company, which is a minority shareholder in Vodafone Group Plc, will be able to monetize its stake, following the FIPB nod to Vodafone to buy out 100% stake in the company in India. Piramal Entp owns 10.97% stake and Analjit Singh holds 24.65% stake. This is expected to fetch Piramal close to Rs.8900 crore and it is surely making a huge bounty as it had invested Rs.5900 crore for the same stake. So what it bought at an average price of Rs.538/share, it is selling at Rs.811/share.

Currently, Vodafone holds 64.83% stake and it will be buying out Analjit Singh’s and Piramal’s stake to be become the 100% owner of the domestic unit in India.