Over the past three years, PSUs approached the primary market 20 times as a part of the government’s divestment plan.
With the launch of an offer for sale (OFS) by Rail Vikas Nigam, yet another public sector undertaking (PSU) is coming to the primary equity market. While some analysts are optimistic about the offer, investors may have concerns given the lacklustre performance of several PSUs that either launched an initial public offering (IPO) or OFS in the past three years.
Over the past three years, PSUs approached the primary market 20 times as a part of the government’s divestment plan. This includes six IPOs and 14 offers for sale. Of these, an IPO and an OFS have made money for investors so far.
Mishra Dhatu Nigam, an alloy maker which launched an IPO in March 2018, has gained 54 per cent. Another exception is NHPC. It launched an OFS at Rs 21.8 nearly three years ago. On Thursday, it closed at Rs 24.6 on the BSE.
