Good PSU in defense sector with heavy order book. This is also portfolio stock and seen from long term perspective.( This is called as 'Fill it, shut it and forget it') Hero Honda's 1990's slogan
You may get listing gain of around 20-25 % and 10 % YoY return.
Hi All I urge people not to apply for PSU IPO's. Dont get tempted by GMP, P/E Ratio etc. 1 in 10 psu ipo's will get succeed. (Failure rate is 90%). The success story is minimal to IRCTC. Below are the few longterm PSU stocks trading below the IPO issue price 1. Cochin shipyard 2. Coal India 3. Shipping corporation of india 4. BHEL 5. HAL 6. ONGC 7. PnB
53.1. papon| Link| Bookmark|
September 27, 2020 7:24:50 AM
IPO Mentor (500+ Posts, 500+ Likes)
Sagar bhai, who is thinking for long term. Most of the allotes will be out at 9.45 preopen. No long term view on this IPO. Disc - Holding IRCTC since its listing
I agree with you Sagarji we have seen this in some of the PSU IPO's but talking about MDL ipo it's different like IRCTC... coming at a cheaper valuations than it's peers like GRSE and Cochin.
It is the only company which manufactures destroyers submarines and has a great order book which will be executed in the next 6-7 years...Debt-free company and rich cash balance...
I respect your opinion but this IPO is different and has much more value for its shareholders...
sir, I think generaling all the PSU is not right. 1. MD shipyard is experts in building defence destroyer and sub marain and very good divident paying company with mini ratna status. 2. they have 55000 crs of order in their hands for next 5 to 7 years. 3. compare with peers garden ship yard is trading at 14 pe. if same value is given listing will be 100% 290rs and more. what else is there to complain ?
Govt of India should use green shoe option in this IPO (like OFS) and offload additional 10% of shares. This will save the PSU company from continuous threat of FPO/OFS for fulfilling SEBI rule of 25% free float. One of the main reasons for continuous low valuation of PSU shares are continuing threat of FPO and OFS.
The GMP is steady and with such a small issue the demand for the sharea wull ve very high. The gmp will rise to 200 plus levels due to the high demand.
42. Eagleye| Link| Bookmark|
September 26, 2020 5:28:47 PM
IPO Guru (6600+ Posts, 22000+ Likes)
Mazagon Dock IPO GMP 130 +/- 1
42.1. sauravk| Link| Bookmark|
September 27, 2020 1:44:00 AM
Top Contributor (200+ Posts, 400+ Likes)
@EagleEye - would ypu agree that cochin shipyard is a good buy as proxy play for short term?
41. sauravk| Link| Bookmark|
September 27, 2020 1:41:11 AM
Top Contributor (200+ Posts, 400+ Likes)
Allocation will ofcourse depend on luck. But, buy cochin shipyard as a proxy play confidently for 25-30% return.