TATA STEEL / Tisco FPO Should u invest?

The FPO seems to have been already oversubscribed in the anchor investor leg that too 9 times at upper band of 610, but should u invest?

The markets are seeing a fall and expected to fall further ,  most commodities are at cyclical highs and most stocks fully valued.

So does the TATA STEEL/ TISCO fpo look good?

Yes if u want to buy a lot of stocks … say if u are an institution but is it a screaming buy if ur a small investor with a limited demand?

Yes, its a commodity/ steel stock but it has US $ 10 billion plus in financial debts.

Negatives include

Just a 2% discount (and falling) to market price.

No discount to small investors, so no safety margin.

The FPO has seen full underwriting by BRLMs, much before the issue opening.

Negative overall market sentiment and a loss to ipo investors in last few issues

Potential to fall below Rs 610 is very likely once these shares hit the market.

Im giving it a miss,  What about u?

fpo details


2 thoughts on “TATA STEEL / Tisco FPO Should u invest?

  1. i am giving it a miss, and even posted an assesment why my cost of funds is preventing me from applying to IPOs… right now i am bullish on Lakshmi energy and foods (your inputs would be highly appreciated)

    in case you seem it as an OK stock… wait for a few days.. technicals hint a further correction

  2. ankur.. hold on until feb 18.. thats when the hearing of the Khamano court case comes up in a Punjab court.. balbir ji has been charged here by the labour departement..

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