LML share rides buyout rumours once again
LML scrip defied the bearish mood on Friday, hitting the upper end of the 5% intra-day circuit filter to close at Rs 14.99.
By TNN |
MUMBAI: LML scrip defied the bearish mood on Friday, hitting the upper end of the 5% intra-day circuit filter to close at Rs 14.99.
Market watchers said punters are accumulating the stock anticipating that some domestic automobile major will pick up a majority stake in the company at a premium to current market price.
This is not the first time that such talk has been doing the rounds. But analysts tracking the sector feel this is highly unlikely. They believe a major impediment would be the company’s huge accumulated losses.
A potential acquirer would have to infuse a large amount of cash and write off the interest. However, industry sources believe the one advantage the company has to offer would be capacity. The company had recently relaunched its gearless scooters.
Market watchers said punters are accumulating the stock anticipating that some domestic automobile major will pick up a majority stake in the company at a premium to current market price.
This is not the first time that such talk has been doing the rounds. But analysts tracking the sector feel this is highly unlikely. They believe a major impediment would be the company’s huge accumulated losses.
A potential acquirer would have to infuse a large amount of cash and write off the interest. However, industry sources believe the one advantage the company has to offer would be capacity. The company had recently relaunched its gearless scooters.
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