FSL did more than Rs. 2000 crores of turnover and Rs. 135 crores of profit. At the CMP of Rs. 17.50 the company commands a Market cap of just around Rs. 755 crores. Even if the deal happens at 8 times the current year EPS the company is unlikely to get sold at less than Rs. 25 which is 43% appreciation from the current levels. But this price might not get achieved until the deal is announced.
Trader can buy the stock at current levels for a quick appreciation of 5-6 % in matter of 4-5 trading sessions as the counter witnessed huge volumes of approx 5.5 million shares and the stock closed up around 4%, with huge built up in Open Interest on the news of the serco-intelenet deal. The stop loss for this trade should be kept at Rs. 17.