I think my point of view is misunderstood.
Take the case of MOIL.It came with buyback at 234 when cash/share was 180. Today(after 1.5 yr), it is at 510 (adjusted to bonus) and still available to reasonable valuation (May be EV of 8-10 X FY19E EBITDA). Why govt of India should opt for tendering their shares at such cheap valuation in 2016 when manganese was at the negative part of cycle. Same holds good for EIL, NMDC. Fundamentally cheap but still sold at cheaper valuation by promoter (govt of india) for HNIs and FIIs to take advantage.
BSE has appreciated only by 15% in a year even when markets are in a state of euphoria.BSE has got net cash of 2500 Cr (> 50% of mktcap) and still trades at 20-23 X FY19E EPS.
Avenue supermart trades at >100 P/E. No one can predict right price for speculation.
My question is " Before going for IPO, is it possible for all shareholders to sell their stake (similar to buyback) to company so that they get fair value of 900+ even in 2016. In general, people opt to clean up cash before stake sale. In fact, that is the right approach. After all why one should sell cash on book for cash?
So i am not biased with hindsight advantage but based on sheer valuation, does management or leading shareholders misprice during IPO/OFS/buyback? Thats my question.
BSE can easily be sold at 1000 during IPO if management feels fair value for buyback is 1000+ now. In my view fair value is 1100+ today.