Shares of select public sector undertakings (PSU) companies are under pressure, falling up to 12% after the government has fixes the floor price for stake sale of MMTC at huge discount.
Besides MMTC, State Trading Corporation of India, Dredging Corporation of India, Hindustan Copper, Andrew Yule and Company, HMT and ITI are down 3-12% on the Bombay Stock Exchange (BSE).
MMTC is locked in lower circuit of 10% at Rs 190 with no buyers on the counter. The government is planning to sell 9.33% stake through offer-for-sale (OFS) today has set a floor price of Rs 60 per share. The floor price is at 72% discount to Wednesday’s closing price of Rs 211 on BSE.
A combined 32,513 shares have changed hands and there are pending sell orders for 7.06 million shares on BSE and NSE at 1136 hours.
Analyst at Angel Broking recommends investors to AVOID subscribing to shares due to expensive valuation.
The company’s financial performance has been inconsistent and erratic over the past few years. The past financials of the company do not indicate stability in earnings going forward, analyst said in its report.
Among the other individual stocks, STC India has dipped 11.5% to Rs 136, followed by Hindustan Copper (down 6% at Rs 83) and Dredging Corporation (down 5% at Rs 194).
Besides MMTC, State Trading Corporation of India, Dredging Corporation of India, Hindustan Copper, Andrew Yule and Company, HMT and ITI are down 3-12% on the Bombay Stock Exchange (BSE).
MMTC is locked in lower circuit of 10% at Rs 190 with no buyers on the counter. The government is planning to sell 9.33% stake through offer-for-sale (OFS) today has set a floor price of Rs 60 per share. The floor price is at 72% discount to Wednesday’s closing price of Rs 211 on BSE.
A combined 32,513 shares have changed hands and there are pending sell orders for 7.06 million shares on BSE and NSE at 1136 hours.
Analyst at Angel Broking recommends investors to AVOID subscribing to shares due to expensive valuation.
The company’s financial performance has been inconsistent and erratic over the past few years. The past financials of the company do not indicate stability in earnings going forward, analyst said in its report.
Among the other individual stocks, STC India has dipped 11.5% to Rs 136, followed by Hindustan Copper (down 6% at Rs 83) and Dredging Corporation (down 5% at Rs 194).
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