Avoid Fortis at the moment: Seshadri Bharathan, KSEMA Fincon Ltd
Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about Fortis.
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| Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, in a chat with ET Now talks about Fortis.
What is the view on Fortis? The Parkway news seems to have given the stock a bit of a perk up because I believe the amount that Fortis has quoted a tad below what the street was probably expecting.
My sense is that this is not the knock out round. There would be another round of bidding for this company. Second the sum amount of money required to buyout this would be around close to 10,000 crores - 49-51% - where 49% is contributed by Fortis.
It would mean that Fortis would have to go for another round of fund raising which might also include issue of fresh equities which might dilute the holding and affect the EPS going forward. So at this point of time, unless there is clarity, my sense is that investor should avoid the share.
What is the view on Fortis? The Parkway news seems to have given the stock a bit of a perk up because I believe the amount that Fortis has quoted a tad below what the street was probably expecting.
My sense is that this is not the knock out round. There would be another round of bidding for this company. Second the sum amount of money required to buyout this would be around close to 10,000 crores - 49-51% - where 49% is contributed by Fortis.
It would mean that Fortis would have to go for another round of fund raising which might also include issue of fresh equities which might dilute the holding and affect the EPS going forward. So at this point of time, unless there is clarity, my sense is that investor should avoid the share.
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