Awash in liquidity, markets now inundated with OFS; Anil Singhvi explains what is there for investors
There cannot be a better time than now to raise money from the markets, the Market Guru opined. Anybody who wants to raise money in equity or debt markets, will not find a better time than now. Interest rates are lowest now in the debt markets
There is more than ample liquidity in the stock markets and companies are now capitalising on this advantage by bringing Offer For Sale (OFS) issues. They are now either aggressively raising money through these OFS or are bringing issues in compliance with SEBI regulations. Three such OFS issues begin on Thursday. Moreover, the government is also getting to the disinvestment route to raise money. How should the investors see this? Zee Business Managing Editor Anil Singhvi gives his take.
There cannot be a better time than now to raise money from the markets, the Market Guru opined. Anybody who wants to raise money in equity or debt markets, will not find a better time than now. Interest rates are lowest now in the debt markets.
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Over the last 2-3 years, there are many industries where the capacity has not increased. Even in the equity markets, the levels are at their lifetime highs.
This is the best time for those corporates to raise money from the markets, who think that their businesses have good outlook, Singhvi said.
Any company which sees revenue visibility over the next 3-4 years has an opportunity to raise money as both the equity and debt markets are offering opportunities of a lifetime.
If promotes sell equities at a higher price now, it augurs well, for them and the company.
The demand is gradually coming back, and many week players are now out from the businesses.
Even the government’s plans to divest in public companies now is a good move.
What is there for investors?
The Managing Editor said that any investor putting money in these OFS issues should have a view of at least 3-5 years. He said that trading with stop losses is all together a different ball game.
The companies who are raising money through these public issues will invest it in projects and expansion. All this will take some time, he opined.
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Investors should also brace up for market corrections as that is a reality and would come eventually. On a market correction they should not think the investments as bad buys, he advised.
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