In my opinion it is the right time to buy IGIIBL. Price range around 2-2.15 gives ideal entry point. The book value for IGIIBL as of March-2012 stands at PKR 6.28. If the BAFL deal strikes even at 0.5x BV the target will be PKR 3-3.15. It seems plausible as RBS-FABL deal was completed at 0.86x BV of RBS. Hence IGIIBL deal at 0.5x or above cannot be ruled out. As Qadir bhai has mentioned that the deal is close to its realization, we may expect price appreciation soon. (Kindly ignore Bilal Moti's Time-Frame)
Whilst the time appears right to buy this share, I would like to share the following with the forum:
It was brought to attention of teh Chairman of the bank about some mal practices or fraud by a couple of top officials of IGI bank.. The Chairman got put off and decided to sell the bank. The deal with BAFL was closed at Rs 4/ share. However, the SECP had raised some questions/ objections which both parties have been working to resolve.
The rumor has it that the matter will be resolved soon. In the worst case that it lingers on for some time the chairman may then decide to pull out of this deal and revamp the bank with some new blood with close monitoring and with an ambitious plan.