RCF off intraday high ahead of OFS
The government is likely to raise between Rs 250-300 crore by divesting 12.5 per cent stake or 6.89 crore shares through the OFS route.
By ET Online | Updated:
MUMBAI: Shares of Rashtriya Chemicals and Fertilisers ( RCF) pared some of the intraday gains on Thursday, ahead of its offer for sale ( OFS) tomorrow.
The government is likely to raise between Rs 250 and Rs 300 crore by divesting 12.5 per cent stake or 6.89 crore shares through the OFS route. Around 25 per cent of RCF OFS may be kept reserved for funds and insurance companies, say reports.
“We do not cover RCF, but the valuations have now come to a level where it is very cheap. There is no optional value for additional capacity which has built in the stock price. This is a question of basically patience now because if they do increase capacity to $20 million for two years then hopefully there is a lot of value in the stock,” said Prabhat Awasthi, Head-Equity Research & MD, India, Nomura Financial Advisories & Securities.
So far this fiscal, the government has raised over Rs 21,500 crore through PSU stake sale and may sell stake in three more companies --MMTC, SAIL and NALCO -- this fiscal.
At 12:00 pm, the stock was at Rs 44.75, up 0.45 per cent, on the NSE. It touched a high of Rs 45.60 and a low of Rs 44.10 in trade today.
The government is likely to raise between Rs 250 and Rs 300 crore by divesting 12.5 per cent stake or 6.89 crore shares through the OFS route. Around 25 per cent of RCF OFS may be kept reserved for funds and insurance companies, say reports.
“We do not cover RCF, but the valuations have now come to a level where it is very cheap. There is no optional value for additional capacity which has built in the stock price. This is a question of basically patience now because if they do increase capacity to $20 million for two years then hopefully there is a lot of value in the stock,” said Prabhat Awasthi, Head-Equity Research & MD, India, Nomura Financial Advisories & Securities.
So far this fiscal, the government has raised over Rs 21,500 crore through PSU stake sale and may sell stake in three more companies --MMTC, SAIL and NALCO -- this fiscal.
At 12:00 pm, the stock was at Rs 44.75, up 0.45 per cent, on the NSE. It touched a high of Rs 45.60 and a low of Rs 44.10 in trade today.
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