Will Coal India’s offer-for-sale on Friday receive strong response from retail investors?. Expectations are high after, the previous offer-for-sale (OFS) by SAIL last December met with overwhelming response, with the portion reserved for retail investors subscribed 2.5 times.

However, the track record of individual stock performance once the OFS is complete is more varied. Of the 14 OFS made since the first one March 2012, eight are now trading above their floor prices.

SAIL – at Thursday’s closing of Rs 78.60, is above its March 2013 allotment price of Rs 63 but well below last December’s second OFS price of Rs 83.

MMTC, NTPC and NMDC have fallen below their floor prices. Hindustan Copper closed on Thursday at Rs 70, its floor price for its July 2013 OFS but a far cry from the one just eight months prior (in November 2012) at Rs 155.

Thanks to overall rally in the market, PSU stocks have also started looking up. Even the ones that have moved up had, till recently, been reeling under pressure of an overall downturn in PSU stocks.

The BSE PSU Index, in fact is currently ruling at 8,344, far from its all-time high of 11,205.38, registered in 2008.

Most offers-for-sale, despite discount, had attracted only a lukewarm response from retail investors. According to analysts, lack of knowledge on how to apply through exchanges was also one of the major reasons for poor response. Addressing the issue, SEBI recently tweaked the rule, saying investors can put in their at a cut-off price (in addition to placing bid price) for shares sold through the OFS route.

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