See National Fertilisers' OFS floor price at Rs 30: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "We are going to see divestment or offer for sale (OFS) of 10 remaining PSUs to comply with the minimum public shareholding norms by August 08 because that is the deadline. I don't think that government will really be missing on that."

He futher added, "National Fertilisers (NFL) also falls in the same category. If one sees the price erosion this will keep on happening. I don't see fundamental reason for the stock to really fall because now with the market cap of close to about Rs 1,800 crore and not much debt in the books of the company. They have six plants of which two are based on the gas and four on naphtha."
"I don't think on a fundamental basis the valuations are looking bad, but it will keep on correcting. I won't be surprised to see the floor price getting fixed at about Rs 30. The stake sale is just a formality and the insurance companies & maybe the LICs of the world will come to subscribe to this issue," Tulsian said.