RCF OFS is available at a throw away price: Manish Sonthalia, Moitlal Oswal

In a chat with ET now Manish Sonthalia of Motilal Oswal Asset Management shares his views on Rashtriya Chemicals OFS.

ET Now: The RCF's OFS do you think it is going to garner good response with the flow price now set at Rs 45 per share?

Manish Sonthalia: These are all being available at throw away prices, you do not have clarity on fertilizer issues, fertilizer investments in the country but sooner or later these stocks will see appreciation in prices but at 45-44 odd rupee, these are throw away prices.

Those who are long term investors and they know immediate triggers per se but long term investors like insurance companies etc. would look deep value in them provided they have horizons of 5-10 years which most in the market would not have.

So it is going to be a change of hands from the Government of India to mostly the insurance companies who have been interested in buying these shares.