HMT, NFL, FACT look interesting in fertilisers: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "If you really take three stocks where the government has a holding of 98 percent that is HMT, National Fertilisers (NFL) and Fertilizers & Chemicals Travancore (FACT), they will be going for a dilution of 8 percent or so. If you really see the market cap of these companies, they will be able to mobilise anywhere close to about Rs 100-200 crore. That means none of these issues are aimed more with a view to mobilise the fund resources or maybe to meet the divestment target, but more to comply with the minimum public shareholding norms which government has to comply with by 3rd August."

"These are three interesting plays. I do not see much erosion in the value than the current price. NFL is likely to sail through at the current price which is ruling at about Rs 40. In HMT and FACT, we may see the floor price marginally lower, maybe by about 20-30 percent and the two interesting things will be that of Neyveli Lignite and Hindustan Copper where government is holding 4 percent plus stake that is 94 percent stake which they intend to do dilution where the fund mobilisation can be anywhere between Rs 300-350 crore. So taking all these 11 companies put together which will be hitting the Offer For Sale (OFS) in these next 45 days or so, government is intending to mobilise anywhere between Rs 50 crore to Rs 350 crore depending on the dilution which will be capped at about 90 percent in cases of all these companies.