Styrolution ABS dips on fixing of OFS price at steep discount
Analyst at Angel Broking recommends investors to subscribe for OFS as the offer price is placed at a very attractive valuation.
Styrolution ABS (India) has dipped 6% to Rs 490 after its parent company has fixed the share sale price at Rs 400 per share. The floor price is 23% discount to Monday’s closing price.
The stock opened at Rs 505 and hit a low of Rs 487 on BSE. A combined around 10,636 shares changed hands on the counter in early morning deals on BSE and NSE.
The promoter of Styrolution ABS, Styrolution Jersey (the parent company) proposes to sell 2.17 million equity shares representing 12.3% of the total paid up equity share capital of the company through offer-for-sale (OFS) today.
The stake sell is offered to abide by the June 2010 amendment of ‘Securities Contract Act’ which mandates listed companies to have a minimum 25% of public shareholding by June 2013.
Analyst at Angel Broking recommends investors to subscribe for Styrolution OFS as the offer price is placed at a very attractive valuation of 5.7x its CY2014E earnings and at 23% discount to the closing price of 20th May, 2013.
The stock opened at Rs 505 and hit a low of Rs 487 on BSE. A combined around 10,636 shares changed hands on the counter in early morning deals on BSE and NSE.
The promoter of Styrolution ABS, Styrolution Jersey (the parent company) proposes to sell 2.17 million equity shares representing 12.3% of the total paid up equity share capital of the company through offer-for-sale (OFS) today.
The stake sell is offered to abide by the June 2010 amendment of ‘Securities Contract Act’ which mandates listed companies to have a minimum 25% of public shareholding by June 2013.
Analyst at Angel Broking recommends investors to subscribe for Styrolution OFS as the offer price is placed at a very attractive valuation of 5.7x its CY2014E earnings and at 23% discount to the closing price of 20th May, 2013.