Street Signs: A case for PSU share sales, Nova Agri GMP at 50%, and more

A case for more PSU share sales
 

The success of NHPC’s Rs 2,400-crore offer for sale (OFS), which concluded on Friday, could pave the way for further disinvestment by the government. The share sale not only witnessed strong demand but the hydropower company’s shares also rallied in the secondary market, even as the government offloaded 3.5 per cent stake. This was in contrast to the past when PSU stocks tended to crash after the government launched an OFS. On Saturday, NHPC rallied 10 per cent amid strong buying momentum in other PSUs, as well. “This is an opportune time for the government to divest minority stakes. They will fetch better valuations plus there seems to be strong demand for state-owned paper,” said a banker.

Promoters up stake in Jio Fin again
 

The promoter shareholding in Jio Financial Services, a unit spun-off from Reliance Industries, has edged higher for a second straight quarter. At the end of December 2023 quarter, the promoter holding in the Mukesh Ambani-led firm stood at 47.12, up 35 basis points from 46.77 at the end of September 2023 quarter. At the time of listing in August, the promoter holding in Jio Fin stood at 45.8 per cent. Market experts say promoters hiking their stake is supportive for the company’s stock price even though it is yet to assume full-scale operations. Jio Fin, whose shares have rallied close to 6 per cent this month, is valued at Rs 1.57 trillion.
 

Nova Agri GMP at 50%, Epack at 13%

The grey market premium (GMP) of Nova Agritech, an agro product company, is hovering close to 50 per cent ahead of its Rs 144-crore IPO. Meanwhile, the GMP for Epack Durable, a home appliance company, is relatively modest at 

13 per cent. Epack’s Rs 640-crore IPO comprises Rs 400 crore fresh fund raise, while Nova plans 

to raise Rs 112 crore from its maiden share sale. Epack’s IPO closes on Tuesday, while Nova’s opens on the same day. At the IPO price, Epack is valued at Rs 2,200 crore, while Nova is valued at Rs 380 crore.