Hind Copper issue offered at 42% discount, priced at Rs 155 a share
fe Bureau: Mumbai, Nov 23 2012, 02:37 IST
fundamental merit in buying this stock unless it is offered at a huge discount of 70-80% from the current market price, which is unlikely as it may lead to litigation against the government,” he added.
However, experts believe more than the extent of discount, what investors would be keen to consider is a clarity on capital allocation by the company post the stake sale.
“The pricing of an issue is derived from the company's capital deployment strategy that leads to cash-flow generation. However, most of the public sector units fail to provide any clarity on this aspect, which may not enthuse investors in the current markets conditions even if a discount is offered,” said another analyst.
While several PSUs, including Nalco, NMDC, Oil India, NTPC and MMTC, have been in the limelight as the possible divestment candidates in the next one month, analysts, in general, have identified NMDC as the only attractive bet.
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