/ After HUDCO, Investors Await Govt’s Further Divestments ~ Ways2Capital|Stock Tips|Stock Market Tips|Intraday Stock Tips|Stock Trading Tips|NSE BSE Tips

Friday, 12 May 2017

As per the Finance Minister Arun Jaitley announced the listing of public sector enterprises in his recent Union Budget speech, the Housing and Development Corporation (HUDCO) was first in the queue to divest some of its stakes.

The government’s intention behind divestment of PSUs is actually bringing in more transparency and accountability in the PSUs. The markets celebrated the government’s good initiative and gave in massive response.

The HUDCO IPO opened on May 8 and closed on May 11. At the end of its third day of subscription, the issue got subscribed by 79.31 times.

The qualified institutional buyers reported subscription of 35.27 times, Non-institutional investors reported subscription of 157.89 times, Retail investors reported subscription of 3.54 times and Employees of the company reported subscription of 0.16 times on the third day of subscription as of 1650 hours.

The IPO followed the book-building process wherein the price band was pegged at Rs 56 to Rs 60 per equity share. The one market lot consisted of 200 shares. Many market experts had reported that the IPO seems under-valued.

It seems markets would give the similar response to the government’s future divestment programs in various public sector enterprises. The market is waiting for the IPOs of IRCTC, IRCON, few state-owned insurance companies and many more PSUs.

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