Tata Steel FPO opens: Should you subscribe?

The world's seventh largest steel producer Tata Steel subsequent public offering (FPO) has opened for subscription today. The 594-610 5.7 million ordinary shares of Rs 10 each for its FPO at Rs per share is a certain price band.

Company on 21 at Rs 3385.8 release, the goal by 3477 million would be better off in January.

Tata Steel opens FPO: If you subscribe to?

Experts are divided on the issue. KR Manish Bhatt of Prabhudas Lilladher Deven Choksey of Choksey and are positive, investment advisor, the SP Tulsian thumps have to do the same.

"We are excited Tata group plans FPO, to potential investors because it is no longer enough on the table really, when it hit the market on how to value and will be seen in the cell .. worry about FPO Tata Steel's global presence is still present, therefore, we fast to the question on pricing is a thumps, indexation benefit can search for this problem can only be attractive to lenders. and said. institutional investors in the company, "Tulsian.

However, long-term investors to buy Choksey advice. Problem after like Bhatt.

Pinc Research market research firm maintained a target price of Rs 817 to buy stock

Report says, "Q4FY11 prices for the contract price due to a high-rise office level has settled coking coal spot prices to strengthen in Australia are provided in flood disturbed. We believe that high commodity prices will be further pressure on margins in the processing of steel. FY12 exercise. But rising steel prices will integrate the operations of Tata Steel of India to press charges in benefits. "

"In FY12E EV / EBITDA 4.8 x 4.9 x and FPO and CMP, attractive and important to maintain. We revised target price of Rs 817 (6.1x FY12E EV mixed stock with stock purchases on the top band / EBITDA) report," he said. The company recommends FPO membership.

Tata Steel's 27.2 million tons per year of steel production capacity. According to ESC, the company's seventh largest steel companies in the world crude steel production in 2009 was on. The company is also one of the most diverse geographical steel producer, with operations in 26 countries and a commercial presence in over 50 countries.

Using the proceeds of production will be Tata Steel Jamshedpur expansion of existing plants and pay the redemption amount of a private placement of redeemable non-convertible debentures based on the maturity of some of the company for the investment to finance part of the company's share capital.