MNC stocks: Action-packed weeks ahead
At least four companies -- Fresenius Kabi Oncology, Disa India, Blue Dart and Xchanging Solutions -- have already sold promoter shares through one-day Offer for Sale (OFS) window in recent weeks, while a few others like Honeywell Auto too are lining up their share sales in due course.
Under the offer-for-sale route, promoters can offload shares to any investor through a special window the exchanges allow for a day.
Market analysts believes that more MNCs may opt for the OFS route to comply with Sebi's norm as delisting is not a feasible option because of huge cost involved in it.
"These MNCs firms have only two option to comply with Sebi's directive either to reduce promoter's holding or get delisted. I think delisting is not viable option because of huge cost burden as many stocks have run-up in anticipation of delisting offers a huge premiums," Destimoney Securities MD and CEO Sudip Bandhopadhyay said.
"Sebi's deadline is approaching and in that scenario OFS mechanism is quite quick to reduce promoter holding. I am expecting that in the next two months, many companies will go for OFS route to shore-up non-promoter holding," he said.
He further said in the due course some correction in these share prices would be noticed.
"The shares would not crash because these are fundamentally sound companies
Be the first to comment.