National Buildings Construction Corporation (NBCC) will list today and it might put on 5-10% on listing, said CNBC-TV18's managing editor Udayan Mukherjee. It has some characteristics which are slightly more comforting than the rest of the infrastructure space. It has zero debt, reasonable order book compared to revenues, government patronage etc.
Its issue price was Rs 106, so it might list at Rs115-120 and one could make 10-12%, but more upsize than that is difficult to justify. This is because stocks if they goes on to list at Rs 115-120 would be trading at 14 times current years earnings and you can buy much larger companies, pedigreed companies for that kind of valuation now in the infrastructure space.
So, one-two days of excitement might happen but the stock will stabilize finally in a zone of Rs 100-115 may be maximum Rs 120 and eventually come around to trading in that band with the IPO price may be as a mean. Despite some of the factors being slightly more encouraging than the really balance sheet troubled infrastructure space, I can't believe that it will be a hugely exciting kind of performer going forward after the first day.
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