Investors may Skip NHPC Issue
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.