CLSA has maintained ‘outperform’ rating on the stock due to ‘undemanding’ valuations and expectation of a delayed turnaround in the company.
The Sensex is trading at 18.42 times one-year forward earnings while the MSCI Emerging Market index is at 11.21 times.
This investment makes a second coming for the UK government-owned development finance institution as the CDC Group was the first private equity investor in the IIFL Group in the late 1990s.
DB International (Asia) was the highest bidder among anchor investors, picking up 20.23% of the portion reserved. Other investors include KIA, DSP Blackrock.
Analysts see a further fall in the stock in the short-term. “Mindtree saw a gap down followed by a strong sell-off on Tuesday resulting in breach of multi-week support
Devotees will initially be able to offer shares through the demat account set up for the temple. This initiative will later be extended to bonds, MFs.
Markets do look richly valued and investors do think that over the long term markets will be able to deliver on earnings, says Vivek Misra of Societe Generale.
Brokers have approached the BSE and the BSE Brokers’ Forum as failing to tender shares would imply that they would get locked in for a year after the IPO.
The government announced that jewellers with turnover of up to Rs 15 crore will be exempt from the excise duty.
"Analysts are being very conservative because inflation has been high, there was disappointment on Modi government’s execution of reforms."
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