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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

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

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 ...