NBCC

Nbcc is a good stock and many big names and houses including Ramesh Damani has repeatedly recommend this stock .Can you share your view regarding its FPO of 10% additional stock as announced recently? ..what will be its impact in stock price immediately n in long term?....what may be the FPO price?

 

Nbcc is a great stock. Ramesh damani has repeatedly suggested a buy. Its debt free and yes orders galore. But do I buy it at 800 plus. I would say no. I am not ready to give that kind of a price to undoubtedly a wonderful stock but a psu with an overhang of fpo . Ten percent on the cards n then another five later. That means the fpo overhang is going to sustain. The government hasn't been that nimble footed n savvy where divestments are concerned. Desperate and ill timed , these fpo's once thought to be value creators have just been value destroyers. I have great regard for Ramesh damani and yes he recommended this stock around 400+ levels. He reiterated his conviction by recently upgrading it for a target of 1000plus. He bought it cheap ,well I.
certainly won't at this levels for 20% gains if at all. I will wait for this foo to play out or will buy if market gravity brings it down to six hundred levels. Quality has a price but my head is in the right place. Disclaimer ...I love this stock.

 

Share your vìews about if one should subscribe NBCC OFS or not.

 

This is good point. Price is always high in OFS. Also I think Vijay Kedia said there is risk of PIL if Govt contracts given to NBCC. He sold the stock from that risk point.

Chance of allottment is such OFS is low because heavy over subscription is there. So how many shares we can get if we apply will be very small number of shares. So I will not apply for OFS. But if investor applies risk of capital will not be there because stock is blue chip PSU.

 

Due to revocation of 500/1000 notes real estate sector will suffer most I think as black money lies in that the most. In such scenario how NBCC looks? It's PSU and it will be sole company without black money touch. Is current price look attractive?