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THE open offer for the shareholders of match manufacturer Wimco from its parent Swedish Match Company is likely to be delayed. The talk is that the issue will come up before the Securities Appellate Tribunal (SAT), as the parent company is disputing the Securities Exchange Board of India ruling asking it to make an open offer for 20 per cent stake. The case is unlikely to be heard this month. Insiders believe that the open offer is unlikely to be made by end of this year even if SAT were to ask the parent to make an open offer.

The stock had earlier gained from Rs 9 level to a high of Rs 32 on expectations of an open offer. The open offer according to SEBI rule is at Rs 35 per share. But the possibility of the delay has led to sharp selling in the counter in the last few days. On Tuesday, the stock ended 13.64 per cent lower at Rs 23.75 with volumes of 19,439 shares on the BSE. On the NSE, the stock closed at Rs 23.70, down 13.82 per cent with volumes of 80,051 shares.

A leading private sector mutual fund that bought large quantities prior to the SEBI ruling is believed to be exiting the counter.

HFCL sees increased activity

THE erstwhile favourite stock of Ketan Parekh, Himachal Futuristic Communications Ltd (HFCL) is again witnessing increased activity. Even though most players attribute the activity in the stock to speculation, a section of the market players think otherwise. Their perception is that the company is likely to sell its telecom licence. HFCL has telecom licence in Punjab and currently operates the WLL service. There is also the talk that the company is expected to divest its 27-28 per cent stake in AB Corp, the media company promoted by Amitabh Bachchan. The company might come out of its financial problems if the divestment takes place. The price action is also attributed to a research report by a leading foreign broking house placing the stock on its buy list.

HFCL ended one per cent higher at Rs 55.45 with volume of 96.21 lakh shares on the BSE and on the NSE, it closed at Rs 54.60, down 0.82 per cent with volume of 2.43 crore.

Virendra Verma

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