Dish TV India's open offer an exit opportunity; stock gains over 8%

Competition may affect in long run, merger synergies should be studied in coming quarters, say analysts

The offer by Dish TV India’s promoters to acquire about 500 million (26 per cent) shares of the company saw the stock gain over 8 per cent on Thursday. The mandatory open offer comes against the backdrop of the promoter groups’ stake rising beyond 5 per cent in a financial year after they bought 91.5 million shares from the open market and their proposed purchase of five million shares.

Since the offer price of Rs 74 apiece is at a 7-8 per cent discount to the current market price, it certainly does not make any sense for investors to subscribe.

However, given