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Shares of Power Finance Corporation (PFC) were trading 1% lower at Rs 257 on the BSE as the company’s share sale programme for diluting 5% of government’s stake at Rs 254 a share commenced today. The floor price of each share is at a discount of 2.14% over Friday's closing price of Rs 259.55.
The government proposes to sell up to 66 million equity shares of the face value of Rs 10 each representing 5% of the total equity share capital of the company through the offer-for-sale (OFS) route.
The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence on July 27, 2015 at 9:15 a.m. and shall close on the July 27, 2015 at 3:30 p.m, PFC said in a statement.
Angel Broking has recommended the OFS to retail investors. Considering the 5% discount (Rs 241) to retail investors, the stock is available at a price to book value (P/B) ratio of 0.73x consensus FY2017E book, which is attractive.
At the OFS price of Rs 254, the stock is trading at 0.77x the consensus FY2017E per book value of Rs 329, added the report.
The stock opened at Rs 259 and has touched a low of Rs 256 on the BSE. Till 10:22 am, a combined 677,155 shares changed hands on the counter on the BSE and NSE.
Meanwhile, thus far in 2015, shares of PFC have underperformed the market by declining 14% compared to a 2% rise in S&P BSE Sensex till yesterday.
The government proposes to sell up to 66 million equity shares of the face value of Rs 10 each representing 5% of the total equity share capital of the company through the offer-for-sale (OFS) route.
The offer shall take place during trading hours on a separate window of the stock exchanges and shall commence on July 27, 2015 at 9:15 a.m. and shall close on the July 27, 2015 at 3:30 p.m, PFC said in a statement.
Angel Broking has recommended the OFS to retail investors. Considering the 5% discount (Rs 241) to retail investors, the stock is available at a price to book value (P/B) ratio of 0.73x consensus FY2017E book, which is attractive.
At the OFS price of Rs 254, the stock is trading at 0.77x the consensus FY2017E per book value of Rs 329, added the report.
The stock opened at Rs 259 and has touched a low of Rs 256 on the BSE. Till 10:22 am, a combined 677,155 shares changed hands on the counter on the BSE and NSE.
Meanwhile, thus far in 2015, shares of PFC have underperformed the market by declining 14% compared to a 2% rise in S&P BSE Sensex till yesterday.
