PNC Infratech asset sale: Why mutual funds love the stock despite a lower deal multiple.

Yogesh Jain, MD, PNC Infratech Ltd.; Chakresh Jain, MD and chief financial officer business responsibility head promoter, PNC Infratech Ltd.; image credit: PNC Infratech.

Synopsis

PNC Infratech is reported to have finalised a deal to sell 12 of its road assets to private equity investor KKR. Some of its peers got better price-to-book multiples in similar deals. Yet, most brokerages which have a strong buy rating on the stock see further rerating post-deal announcement. Will smart money continue to chase the company?

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