Marg ltd is one of the fastest growing infrastructure company in the business of infrastructure development, EPC works and real estate. Marg is promoted by Mr. GR Reddy, first generation self-made entrepreneur who is determined to take his company to the next level.
At the forefront is his Karaikal Port which is poised for strong growth due to its strategic location, well developed hinterland and ambitious expansion plan. It recently sold 13% in the port business for 200 cr valuing the port at Rs. 1330 Cr. The promoter has been buying aggressively as he bought around 6% from Citigroup at 88 share in May 2011. The promoter has launched a voluntary open offer at 91.50 per share (the company also plan to accrue interest for 1.5 months due to delay in open offer) to take his shareholding to 74.40%. Post the open offer, I expect the promoter to de merge its real estate and port business to unlock huge value which he has spoke in march 2011. We believe the promoter has come out to open offer to make use to depressed share value to increase its stake and then unlock value. The promoter started his career has merchant banker. Lot of long term investor has entered this stock recently which is unlikely to tender and since the stock is trading at historic low, the tender ratio would be lower.
According to shareholding analysis, we expect the acceptance ratio to be 80-100%.
