The R29,220-crore open offer by Unilever — the largest-ever in the Indian capital market — to enhance its stake in Hindustan Unilever (HUL) has turned out to
be one of the most successful in recent times. Rarely has a large open offer attracted such a high quantum of shares during the tendering period.
Meanwhile, the surge in the price of the HUL share continued on Friday with the FMCG major touching a new record high. On the BSE, the scrip touched a new lifetime high of R631.95 before ending the day at R608.75, up 1.33%.
Thursday saw HUL shares ending just a tad above the 600-mark at Rs 600.75 apiece.
Interestingly, a section of the market is already betting on whether Unilever — based on its recent success — would announce another open offer at a higher price to increase its stake to 75%, which was the original intent of the Anglo-Dutch major. Most large institutional investors, including government-owned Life Insurance Corporation of India (LIC), Aberdeen and Oppenheimer are believed to have tendered only a part of their holding in the offer.
“We believe that if Unilever gets aggressive in increasing its stake to 75%, it may revise the price upwards, leading to a fresh upward rally in the stock. Therefore, the movement in the stock would be largely on account of corporate action rather than the fundamentals,” stated a report by ICICI Direct released on Friday. The brokerage, however, has a target price of Rs 590 with a hold rating