Amtek has recently appointed Rothschild & Co to advise on potential sale of all overseas operations, a Bloomberg report said.
“As of now, it appears that the easy liquidity conditions could sustain in the visible future,” the brokerage CLSA said.
The deal has been stuck because of opposition from minority shareholders, notably Life Insurance Corporation of India, which was unhappy about the earlier valuations and tax issues at Cairn.
Patil passed away in 2012 after battling lung cancer for over three years. He was 74. At the time of his death, he was the chairman of NSDL and CCI.
Motilal Oswal had a rub-off effect on other brokerage firms, as Edelweiss Financial Services ended up 4.3% at Rs 86.85 after hitting a 52-week high of Rs 88.50 intraday.
Shares of Indian Hotels, EIH, Advani Hotels, Oriental Hotels and Viceroy Hotels have jumped 9%-64% in the last three months.
IIFL Holdings said proposed investment will happen via compulsorily convertible preference shares, which on conversion, will result in about 15% stake for CDC Group.
CLSA has maintained ‘outperform’ rating on the stock due to ‘undemanding’ valuations and expectation of a delayed turnaround in the company.
The Sensex is trading at 18.42 times one-year forward earnings while the MSCI Emerging Market index is at 11.21 times.
This investment makes a second coming for the UK government-owned development finance institution as the CDC Group was the first private equity investor in the IIFL Group in the late 1990s.
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