Grasim has been hitting new highs consistently, day-after-day. It hit a new high on Wednesday at Rs.1185.80; yesterday at Rs.1199 and today too, the moment the market opened, it hit another new high at Rs.1222.20.
The reason is the listing of AB Capital which got listed today. Grasim holds 57.2% stake and the promoters stake in Grasim has also gone up from 31.3% to 38.8%.
Prior to the listing, JP Morgan initiated coverage on the stock and yesterday, it released a report, stating it is going “overweight” on the stock. It has not set the target price at Rs.1250, to which it was very close today.
The listing of AB Capital gives better value discovery for Grasim; it got listed at Rs.261 while expectations were of Rs.120 to 140 and this proves to be a jackpot for Grasim!