Brokers are advising their clients with high-risk appetite to subscribe to the SBI Life Insurance
offer for sale (OFS). About 2.1 million shares reserved for retail investors — those investing up to Rs 200,000 — will be auctioned on Monday. The floor price for the share sale has been set at Rs 725, a discount of 3.5 per cent to SBI Life stock’s Friday’s close. The institutional portion of the OFS garnered good response on Friday with demand of more than two times the shares on offer. “If the stock price holds above the floor price, investors can make quick arbitrage gains. Otherwise, too, the OFS price is a good entry point for long-term investors,” said an analyst.
A mid-sized IT company that has filed for an initial public offering (IPO) believes the Covid-19 pandemic offers a “silver lining” to the information technology (IT) sector. In its offer document, the firm has cited successful implementation of work-from-home policies, increased spends on automation and R&D, and fresh push for outsourcing as some of the factors that will benefit IT companies. On a year-to-date basis, the BSE IT index is down 7 per cent, outperforming the Sensex, which has declined 18 per cent.