The Hindu Business Line : Everest Industries gains on open offer hopes

On Wednesday, the stock closed at Rs 190.75 on the NSE after reaching an intra-day high of Rs 194.40. It had not too long ago reached its 52-week high of Rs 215 on the same bourse. The exchange witnessed a volume of 4,023 shares, of which, 87.55 per cent was presented for delivery.

On the BSE, the stock closed at Rs 190.35 with 1,890 shares being traded.

Investors refer to an earlier open offer by Accurate Finstock (and Adani Port Infrastructure) to acquire 29.6 lakh shares of Everest Industries, representing 20 per cent of the outstanding voting equity capital at Rs 147 per share. The offer had closed in early April.

Everest Industries (still known in some quarters by its old name, Eternit Everest) is currently seen by marketmen to represent a relatively safe value proposition for investors, especially for those who feel that the fresh offer will be made at a rate higher than the ruling price, say, at Rs 225 per share.

It may be mentioned here that no confirmation of the market's expectation is available at this stage.

A clearer picture, however, is expected to emerge by the middle of next month, not long after the company conducts its forthcoming AGM (slated for July 1). At a board meeting held earlier, a 50 per cent dividend for fiscal 2004-05 was recommended.

At the end of March 31, promoters held 76.01 per cent stake in the company. The Indian public holds 23.68 per cent stake, which includes Mr Bharat Jayantilal Patel's 3.69 per cent.

The company's strengths have been bolstered by a recently-concluded agreement with Braslit, an outfit owned by Saint Gobain, for acquiring the technology required for making special roofing sheets and other accessories. Commercial production of the roofing sheets has started some days ago, it is mentioned.

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