Key Points
Within the engineering space, we like Praj Industries.In software, we continue to be very positive on Tata Elxsi at these levels..
According to The Economic Times, Torrent Pharma is looking to buy the Hamied family's stake in Cipla and that they are working with JP Morgan..
From Cipla minority shareholders, the more people in the fray to buy the Hamied family's stake, the better it is, because there will be an open offer and fresh value can get discovered..
All the acquisitions which have taken place in the pharma industry have been very positive for both the acquirer as well as the acquired company..
I would be a bit worried for Torrent if it was trying to acquire it by itself, because that would become too much for it to chew and would certainly play a great deal of stress on the balance sheet of Torrent Pharma, or it would lead to a lot of earnings dilution or equity dilution for that matter...
