ZeeBiz Demand From Govt: Anil Singhvi makes clarion call for 100 pct allotment in Mazagon Dock-like quality PSUs to retail investors only
The Initial Public Offerings (IPO) of Mazagon Dock Shipbuilders Ltd is set to open today. Through this IPO the government intends to sell its 15.17 per cent stake in the company. Zee Business Managing Editor Anil Singhvi is extremely bullish on this public issue, calling it a must-buy for investors
The Initial Public Offerings (IPO) of Mazagon Dock Shipbuilders Ltd is set to open today. Through this IPO the government intends to sell its 15.17 per cent stake in the company. Zee Business Managing Editor Anil Singhvi is extremely bullish on this public issue, calling it a must-buy for investors.
The Managing Editor has urged the government on behalf of investors to allow maximum allotment of shares to retail investors. He said that the company has strong fundamentals and valuations are very attractive.
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▶️ ज़ी बिज़नेस की सरकार से जोरदार मांग ◀️@AnilSinghvi_- #MazagonDock जैसी अच्छी सरकारी कंपनियों के IPO में पूरा अलॉटमेंट सिर्फ रिटेल निवेशकों को मिले#IPO @SEBI_India @NSEIndia @BSEIndia @SecyDIPAM @CMD_MazagonDock @DefProdnIndia @FinMinIndia @nsitharamanoffc @Anurag_Office pic.twitter.com/IBBEiAODwA
— Zee Business (@ZeeBusiness) September 29, 2020
The Market Guru made a strong demand today that the government should give the entire allotment in quality government companies like Mazagon Dock to retail investors only. A 100 per cent retail allotment should happen in case of government companies. He added that institutional investors can buy the shares at the time of listing.
The Managing Editor said only then will the retail investors be able to get allotment and this will also bring more people to the stock markets. He said that it is of critical importance that the government companies such as this should be allowed to give shares only to retail investors.
Singhvi said the government has power to do this.
The government should give this a thought as these companies can prove to be wealth creators, he said
The Market Guru said that this is a “must-apply” IPO and investors should not miss an opportunity to bid for the shares. Calling it a no-brainer, Singhvi said that investors must put their money in this stock for bumper gains on listing.
The IPO which opens today will end on 1 October. The price band is Rs 135-Rs 145 per share. The lot size is 103 shares and the minimum investment is Rs 14935. The Mazagon Dock IPO is expected to raise Rs 444 cr for this public sector company.
Singhvi said that Mazagon Dock was a top company and the investors should expect the price to get doubled after the listing.
This company makes warships and submarines for the Indian Navy.
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He said that the valuations are also good. He said that the investors have to invest in retail category and for a single lot of 103 shares. The price-to-book value is less than one while the Price-to-Earnings multiple is around 4.5. The market cap is not even half of the sales. The Dividend yield at the IPO price is 7.5 per cent. It is a zero-debt company. The order book is for the next 6-7 years.
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