REVEALED! Why this Rekha Rakesh Jhunjhunwala portfolio share is nosediving? Should you buy?
Rekha Rakesh Jhunjhunwala portfolio stocks are not known for nosediving but sometimes it happens. In this instance, it is Tata Communications share price, which is crashing.
Rekha Rakesh Jhunjhunwala portfolio stocks are not known for nosediving but sometimes it happens. In this instance, it is Tata Communications share price, which is crashing. It has fallen by around 5.75 per cent after the opening bell today. According to the stock market experts, this crash in Tata Communications shares is due to the Government of India (GoI) Offer for Sale (OFS) of its 10 per cent equity in the company. They went on to add that this Rekha Rakesh Jhunjhunwala shre holding stock will soon recover its lost ground as the GoI stock will move into strong hands.
Money making opportunity
Speaking on the opportunity for the stock market investors after the Tata Communications share price crash, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After the OFS, the equity is expected to move from GoI hands to stronger private hands. So, the dip should be seen as a buying opportunity and one should add Tata Communications shares in one's portfolio for long-time time horizon."
Giving various levels of the Tata Communications stock today Mudit Goel, Senior Research Analyst at SMC said, "Tata Communications share price may go down up to Rs 1150 and it has strong support at Rs 1100. If someone enters or is holding Tata Communications stock, it must maintain the stop loss at Rs 1100."
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Tata Communications OFS details
The offer for sale (OFS) of the Government of India's equity in Tata Communications Ltd (TCL) would open today. The central government would divest 10 per cent shares in TCL, along with an additional 6.12 per cent as Green Shoe Option. The offer for sale would be available only for non-retail investors on March 16. The retail investors would be allowed to bid for the government stake on March 17, which is the second day of the sale. The floor price for the OFS has been fixed at Rs 1,161 per equity share. Post the OFS, the government will sell the remaining 10 per cent stakes to Tata Sons Pvt.’s investment arm Panatone Finvest, immediately after the sale. Currently, the government holds a 26.12 per cent stake in Tata Communications Ltd, while 34.8 per cent stake is held by Panatone Finvest Ltd, and 14.07 per cent is owned by Tata Sons.
As per the shareholding patter available with the BSE, Rekha Jhunjhunwala — wife of Rakesh Jhunjhunwala — holds 1.12 per cent (32,00,687 shares) of the net Tata Communications shares.
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