InvestorQ : Can I use IPOs to make the best of PSU divestments and how good are they?
Mahima Roy made post

Can I use IPOs to make the best of PSU divestments and how good are they?

Answer
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2 years ago


In the last 15 years, the divestment of quality PSU companies has given a huge choice of quality paper to invest in. Remember, one of the biggest outperformers of the last 15 years, Maruti Suzuki, was sold to the public by the government through the IPO route. Government owned companies offer the safety of government ownership, comfort of healthy dividend yields and a favourable operating environment. These stocks tend to get overpriced by the time they get listed in the secondary markets. This is one more opportunity for retail investors to get the best through IPOs.