It is reported that NHPC stock saw muted response in trade post its listing falling below it’s issue price. However Mr SK Garg CMD of NHPC defends the issue price saying that it was justified at INR 36 per share adding that offloading by high net individuals was perhaps the biggest factor for slippage of the stock.
Mr Garg expects the stock to pick up in the near future. He further said that currently, the company’s return on equity was at 17% across its 13 power stations. The installed capacity of the company will be 9500 MW by 2013.
Here is a verbatim transcript of the exclusive interview with Mr SK Garg on CNBC-TV18.
Q. On hindsight it seems it would have been prudent for you to price that issue at the lower end of the band and not at INR 36 where you chose to?
A - I don’t think because what has happened is the price which we had earlier decided, was quite reasonable and as I mentioned several times earlier also that it was neither overpriced not under priced. So far the price of our share is concerned INR 36 from the upper band I think this was a right price and we have gone ahead with that. On the day of listing, on the September 1, it opened on a positive note with an 8% rise and went up to INR 42. After that there was some decline. We have been observing that it’s touching INR 33 to INR 34, it’s hovering around that. But overall, as far as shares are concerned, as things are moving in the corporation itself and more projects are on the threshold of commissioning, we hope our shares will pickup in the foreseeable future. So in totality, I still feel that the pricing we have decided is still reasonable.
(Sourced from www.steelguru.com)
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