When the IPO market has gone thanda with all sort of cos making an attempt to list, and most listing below issue price, PFC has come out with their follow on FPO.
Comparing PFC and REC
REC is ruling at a PE multiple of 8.65x and a PB multiple of 1.61 times. In contrast, PFC’s FPO price of Rs. 203 (at upper band) is discounting FY11 earnings by 8.90 times. PFC’s BVPS as on 31st March 2011 stood at Rs. 139, indicating price-to-book multiple of 1.46x, based on price of Rs. 203 per share. … (SP Tulsian)
This stock looks interesting only for a retail investor who plans to hold this stock for some time in future especially because of the 5% discount.. mainly because markets are in a downtrend.
Will you make a listing gain … Im not so sure because that can be assessed after the issue closes for HNIs / IIs. For a small investor the gains can be marginal and in single digit at best is what i bet.