04 APRIL 2013The Economic Times
Indian Government raises $115 million through OFS
Edited by : AL CIRCLE
1 min read
Government of India, the promoter of National Aluminium Company BSE 1.01 % , concluded its offer for sale of shares at INR 40, and raised $115 million on March 15. Soon after that the stock price nosedived to INR 33 in the next few trading sessions . In fact, there are many instances of stock prices going down prior to or after an OFS announcement in the last year.
Very often stock prices come down after the OFS due to excess supply of shares in the short term. That is why many savvy investors look for bargain hunting in this space. "Many multi-national companies were quoting at high valuations irrespective of their fundamentals due to expectations of delisting at high prices. However , after OFS, the valuations are relatively low.
Investors can look at individual stocks," says KartikBSE 1.97 % Mehta , assistant vice-president , equity research - institutional, Sushil Finance. For the uninitiated, the 'offer for sale' route was opened in March 2012 to allow promoters of companies already listed on the stock exchanges to sell their shares through the exchanges , without going through the time consuming 'follow on public offers' .
Very often stock prices come down after the OFS due to excess supply of shares in the short term. That is why many savvy investors look for bargain hunting in this space. "Many multi-national companies were quoting at high valuations irrespective of their fundamentals due to expectations of delisting at high prices. However , after OFS, the valuations are relatively low.
Investors can look at individual stocks," says KartikBSE 1.97 % Mehta , assistant vice-president , equity research - institutional, Sushil Finance. For the uninitiated, the 'offer for sale' route was opened in March 2012 to allow promoters of companies already listed on the stock exchanges to sell their shares through the exchanges , without going through the time consuming 'follow on public offers' .
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