The recent market rally has given the much needed impetus to the IPO season and the latest one to jump this bandwagon is NHPC. The preliminary data shows that it has been oversubscribed by 7 times. Both from the short-term as well as long-term point, it seems to be a good pick . In short-term , investors can pocket a handsome return on account of listing gains and in long-term this company will offer excellent returns by selling clean energy.
Also investing in NHPC IPO will be an intelligent move as it is from the power sector which is the flavour of the season and has excellent growth prospects considering the huge untapped hydel potential we have in India. Also coming from the stable of govt., this IPO has an edge over others as govt. will ensure that the IPO is listed at a 'good' premium to earn the investor's faith. The success of NHPC would fuel the scope of further disinvestment in other govt. entities.This will be a good bet in the long run and it is essential to remain invested in this company to reap huge benefits.
The valuation seems to be perfect and this may tilt the balance in its favour. In grey market , it is running at a premium of Rs. 10 and above which means that the stock may be listed somewhere around Rs.46. Seeing the current subscription level, it seems to be difficult to get the required allotments. But there is no harm in going for it. The only cause of concern is the market sentiments at the time of listing as any negative sentiment can drive the prices southwards. But the govt. has enough financial muscle to ensure its 'smooth' listing and the prices running southwards seem to be a remote possibility, although it can't be ruled out.
"Happy Investing."
impressive dude!!!!!!!
ReplyDeletei agree wid u n wd hv gone 4 long term investmnt in NHPC.
lemme tel u dis1 is goin 2 b a hit.