Not much steam left in the Monnet Ispat issue: Prakash Diwan

Prakash Diwan, Head-Institutional Business, Networth Stock Broking discusses Monnet Ispat on an ET Now interaction.

One word on what Monnet Ispat has done today, Monnet Power the stake sold at the subsidiary valuation higher than the principal companies valuation. Earlier also, couple of months back we have seen one more company doing these things...do you think these are some part stories?...if you can tell into them- stories that can be played in the hope of a 6 month gain of may be 30%-40%-50%?

Prakash Diwan: Yes, but it’s all on a very case-specific basis. Because essentially it’s like if you believe that the particular part has an element of a sectorial play that's fetching premiums or is likely to kind of be one in the front running, front line sectors going forward, then yes, I would put a bit of a heavier weightage on that and belief that the story could work out. It’s happening in the cement, power, steel kind of a bandwidth because that's where all of them are interrelated.

Monnet Ispat- do you think the move is justified and for somebody who has not invested in this can use this positive? You think at 460 it merits an investment option?

Prakash Diwan: Maybe there is not much of steam left in this particular case because when the news came up 2 days back, Blackstone itself kind of being so aggressively looking at the stock, I think that was a better time to somebody would have done that but it's a tad late for that at this point.