Valuation adrift: Uncharted course of low-float PSU rally, shows data

10 PSUs, with public shareholdings below 14%, ride the current, rallying 76% to 4.5 times

A sharp run-up in shares of public sector undertakings (PSUs) with ultra-low public float has raised concerns about fair price discovery and possible manipulation.

The stock prices of the 10 PSU stocks with a public shareholding of less than 14 per cent have rallied between 76 per cent and 4.5 times in the past year.

So far this year, eight of them have gained more than 35 per cent, even as the National Stock Exchange Nifty Smallcap 100 has gained 7 per cent.

Analysts warn that low public shareholding makes these stocks vulnerable to price rigging, as manipulators can easily