From entertainment to 'high-flying' dreams! Being the market leader in the Southern television industry with its basket of successful channels, Sun TV promoter Kalanithi Maran has now put his foot in the aviation industry as he picked up 37.75% in low-cost carrier SpiceJet at Rs 47.25 per share amounting to Rs 750 crore.Experts have given a thumbs up to the deal and expect it to give a leg up to the ‘not-so-profitable’ industry.
Did promoters sell at a discount?
Salil Pitle, ED-Investment Banking at Enam Securities says that the open offer price for SpiceJet has been calculated under SEBI guidelines. He adds that it is too early to comment on capital infusion by Maran into SpiceJet.
Will the stock get re-rated now?
According to Nikhil Vora, IDFC Securities, the Maran’s acquisition is big positive for the stakeholders of SpiceJet and teh stock needs to be given higher valuations now.
Vora feels that the stock will see re-rating now. He expects that the market share of SpiceJet will move up from it current share of 13-14%.
Future of aviation industry
On a optimistic note, Vora says that with Maran joining the bandwagon, the Aviation will now have four big players which is a big positive sign for the sector.
Road ahead for Spice
Maran has bought the stake in individual capacity. Among other stakeholders, one promoter Ajay Singh and his family hold 10% while Goldman Sachs holds around 6%. The other promoter, the Kansagra Family, holds 12%, however over 50% of these shares are pledged.
Pitle explains that SpiceJet business is self-sustaining. There is no deal between Maran and Esthithmar. Maran will buy entire Ross equity post conversion, he added
At 11:08 hrs the share was quoting at Rs 56.10, up Rs 0.05, or 0.09%.
Source http://www.moneycontrol.com/news/business/how-do-experts-view-maran%E2%80%99s-acquisitionspicejet-_463913.html
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