Street cheers Aegis Logistics acquiring Tristar for 809 million dollars

Market pulse

From the investor's mind

To curb aggressive hedging and stabilize the currency, the Reserve Bank of India implemented strict rules preventing importers from canceling and rebooking dollar purchase forwards, while also requiring verification of actual underlying dollar use for transactions exceeding 5 million dollars. These policy measures effectively stopped speculative trading and excessive onshore dollar purchasing that was putting artificial pressure on the domestic currency. Highlighting the dramatic impact of these regulatory interventions, Capitalmind founder Deepak Shenoy noted that the rupee rallied significantly back to 94.99 from 96.7 over just two days. Ultimately, the central bank’s tight clampdown on speculative forward bookings demonstrates how blocking non-genuine corporate hedging can rapidly restore balance to the foreign exchange market.

Word in the street

Aegis Logistics Limited

Aegis Logistics Limited, sporting a market cap of about 52,204 crore after its stock surged 85.2 percent over the past year, is dominating market conversations. Investors are actively discussing the definitive agreement to acquire 89.8 percent of Tristar for 809 million dollars. The street notes that paying 809 million dollars for this stake seems much better than paying 1.5 billion dollars for 100 percent. Participants point out that the equity value is approximately 900 million dollars, whereas the enterprise value, including net debt and liabilities of 600 million dollars, is about 1.5 billion dollars, valuing Tristar at six times EV to EBITDA.

Yesterday's big moves

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