Yesterday’s OFS for Non-retail portion saw High demand for this stock from the MF’s and HNI’s. Today, it is open for retail investors. But now the price is fallen very near to the floor price and one can buy from open market aswell if one is interested to buy rather than buying from OFS.
MF’s seem to be entering in a big way in to PSU stocks especially Defence , railway , & renewable - could be good for long term retail investors , since MF SIP’s gradually could be an enabler for rise in shre price over a period of time.
However , retail investors should be cautious about OFS for stocks with high promoter holding. though for long term investors , it may be a temporary blip since most of these companies have clear earning visibility for next 4-5-6-7 years , though you may not see a sequential growth QOQ , because of long tenure for execution of the orders and the only key risk is timely execution of orders apart from change in Govt policy which may affect minority share holders interest
OFS of PSU’s is a strategic divestment plan by the Govt and there are still 21 PSU’s with promoter stake more than 75% and it is difficult to predict which PSU is next on pipeline for OFS. They just declare in the evening and next day is the OFS.
Discl: Not a sell buy recommendation I have investments in above named PSU’s and hence may be biased. Pl do your own assessment