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(From Business Line)
INVESTORS can take exposures in the Hind Lever Chemicals stock at its current price of Rs 318, in light of the company's impending merger with Tata Chemicals.
As per the swap ratio proposed for the merger, every share of Hind Lever Chemicals can be exchanged for 2.5 shares in Tata Chemicals. At Rs 318, Hind Lever Chemicals is trading at a discount of about 13 per cent to the price suggested by the swap ratio, making it a good proxy for the Tata Chemicals stock (which is at Rs 145). Given its good financial performance in 2003-04, sound business prospects and reasonable valuation levels, the Tata Chemicals stock appears to hold upside …