Why OFS is done?
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Why OFS is done?
In an OFS, a buyer has to provide a bid in order to acquire the shares. The company sets a ‘floor price. ‘ Buyers cannot bid at a price below the floor price. Once the bids are placed, shares are allocated to the different buyers.
What is the meaning of OFS in share market?
Offer for sale
Definition: Offer for sale (OFS) is a simpler method of share sale through the exchange platform for listed companies. Only promoters or shareholders holding more than 10 per cent of the share capital in a company can come up with such an issue.
Should we buy NMDC OFS?
“NMDC’s OFS price is a good entry point for investors considering its strong business fundamentals in terms of iron ore price and demand,” said Abhijeet Bora, analyst, Sharekhan. Its stake will come down to 60.8\% if investors subscribe to the entire issue.
Who can buy NMDC OFS?
The OFS opened on Tuesday (6 July 2021) for non-retail investors, while both retail as well as non-retail investors were allowed to subscribe on Thursday (7 July 2021). A total of 10\% of the offer size was reserved for retail investors.
“A promoter may sell his shares if he thinks the stock price has reached its fundamental value,” says Aggarwal. Although investors should take notice of large-scale exit by promoters, it may not necessarily result in the stock performing poorly.
Should I sell NMDC?
NMDC, despite inexpensive valuations, should remain under pressure amid declining margins and limited growth visibility. SELL. Value trap: NMDC has cut iron ore prices by 14-16\% for September 2021 after a sharp 40\% correction in seaborne prices in the past three months.
What is NMDC offer sale?
The Union government will sell up to 7.49\% stake in state-run miner NMDC to raise up to Rs 3,620 crore through an offer for sale at a floor price of Rs 165/share on Tuesday-Wednesday. The floor price is at a discount of 5.9\% to the closing share price (Rs 175.3) of NMDC on the BSE on Monday.
Is NMDC a good investment?
ICICI Securities has recommended that NMDC stock with a target price of Rs 175. The company anticipates a +25 percent growth from the stock’s current market price of Rs 140. NMDC is one of the world’s lowest-cost iron ore producers.