In­vestors may Skip NHPC Is­sue

The Economic Times - - Smart -

Mum­bai: In­vestors may skip the share sale of Na­tional Hy­dro­elec­tric Power Cor­po­ra­tion (NHPC) sched­uled on Wed­nes­day. The govern­ment is look­ing to sell 11.36% stake in NHPC on Wed­nes­day at a floor price of ₹ 21.75. NHPC stock closed at ₹ 23.05 on Tues­day.

An­a­lysts are not bullish on­the­stock­de­spiteth­e­gov­ern­ment of­fer­ing shares at a dis­count due to its hazy prospects.

“One should not buy stocks just be­cause seller is of­fer­ing at a dis­count to mar­ket price. I would rather wait for the com­pany to show bet­ter per­for­mance or a solid growth roadmap and buy the stock at ₹ 25 if there is po­ten­tial of higher re­turn,” said Mehra­boon Irani of Nir­mal Bang Se­cu­ri­ties.

Some bro­kers said con­stant sup­ply of pa­per by the govern­ment is hin­der­ing re-rat­ing of pub­lic sec­tor com­pa­nies.

“Past data shows that for small in­vestors, PSU stocks are avail­able at a cheaper price post their OFS in the next few weeks,” said Deven Chok­sey, MD, KR Chok­sey Shares and Se­cu­ri­ties. Arvind Ma­ha­jan of KPMG In­dia be­lieves NHPC could be a good play if in­vestors are look­ing at a medium to longer term.

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