In September, 2017, the selling shareholder tenders their shares @ 150 Rs./ share in the buyback offering..... Which implies that in the eyes of the selling shareholder, the share was more than fully valued @ Rs.150 / share...
A bonus of 1:1 follows this deal...So effectively the share price as considered fair by the selling shareholder becomes Rs. 75 / share. ...and then they want people to buy at over 400 Rs? ..that''s a whopping 550 % price escalation in a matter of a month....I''m sure no algebraic logic known to the mankind can make that look fair or funny either ..
Listing and first day trade of bdl will have a lot of bearing on how retail subscribes in govt psus in present and future. BDL and HAL have been dud issues lets see how low they go from issue price
Most ISSUES are like Modi marketing ,,, big on promise so so on performance .. Lic ka kya hoga ? i wonder ...
Let me rephrase Listing and first day trade of bdl will have a lot of bearing on how discerning retail subscribes in govt psus in present and future. It will show when the public investment goes down to .10% or less Maybe then Rahul baba will entertain us a bit more
The other problem is lazy investing and the govt has managed media and brokerage houses very well as most are positive with long term perspective which when interpreted means wait a decade or longer to get ur cost price !! eg sjvn nhpc etc
True that...'Long term' can never sound appealing......It's the same as being a surrogate mom...They must go through a prolonged period of inconvenience and pain only to deliver (baby) the result for someone else to claim...
im expecting top management by goi n lic to make sure it lists and stays positive or near ipo price and is not a fiasco like gic n nia .. medium term it should correct to more reasonable prices
Regarding PSU/Pvt org stocks, I have a view, that pertains to long term holdings in one's portfolio (mine here, eg.), I tend to let them stay and forget...
I have a few PSU stocks which at every 5% correction in 1 month (if happens) I tend to add in small quantities... they form a part of my portfolio related to long term holdings. Reason? They offer more than FD returns/yr. as dividends while I go on averaging the price...and yes, returns turn quite positive after sometime...
Now, pre budget, dividends were tax free (maybe not now, have to lookup Jet Lee files), while bank FDs were taxed... understand the point?
PSU stocks are capable of going down indefinitely..During both up and down market cycles...Dividend income keeps getting negated by such capital loss... Also a couple days back THEY <--- decided that a few PSUs won't be paying any final dividend this year ..NMDC being the case in point....So time to rely upon the dividend yield too is gone...