TRG Pakistan shares may drop to Rs64-68

A research firm has predicted that TRG Pakistan's share price may fall to between Rs64 and Rs68 per share. This forecast comes after Greentree Holdings Limited announced it will buy shares in TRG at Rs75 each through a tender offer. The move follows a recent court decision that allowed Greentree to proceed with the offer. The tender offer will be open from March 25 to April 4, 2025. KTrade Research, the firm making the predictions, evaluated TRG Pakistan’s assets and determined its post-tender net asset value. They believe this value reflects the company’s cash reserves and asset liquidity. Greentree Holdings aims to acquire an additional 35.1% stake in TRG, bringing its total ownership to about 64.8%. The deal is part of Greentree's strategy to redistribute cash from the sale of TRG's assets, with a significant profit expected from previous investments in companies like Ibex. Currently, shareholders can participate in the tender offer if they are recorded in TRG’s books by February 21, 2025. After this date, TRG's stock price is likely to reflect its net asset value instead of the tender price. TRG Pakistan’s stock closed at Rs70.31 on March 19, 2025, which is a 5.54% increase from the day before. The firm also noted strong returns from portfolio companies like eTelequote and Ibex, but highlighted difficulties faced by Afiniti due to management issues and market conditions. Investors may find the tender offer an appealing exit strategy, especially those concerned about legal uncertainties. Market observers are keen to see how Greentree's increased ownership might impact TRG Pakistan moving forward.