Sandeep Bikaram Rana
Fundamental Analyst
For the general public, it's an opportunity to buy public share, but they will be buying at Rs 650 per unit. The market price is at Rs 800. The company is yet to declare its bonus share for the last fiscal year. If the new shareholders are to get the bonus share then it’s a nice opportunity. If bonus shares are not to be given than I would not recommend the FPO.
The existing shareholders might be concerned about new shares that will enter the market and hamper the share price but there is no need to panic as more than 28 crore will go the reserve of the company and the FPO will make the company strong.
Sagun Shakya
Technical Analyst
Technically, the share price of Shikhar Insurance is in a downward trend. Its price has come down to a Rs 800 from Rs 1100. If the price comes down to Rs 700 than its better to buy the shares from the secondary market. Plus, while applying for FPO, the average cost will be around Rs 700. Also, psychologically Rs 650 is support level.
Nanda Kishore Mundara
Shree Krishna Securities Private Limited. (Broker Number 28)
If the shareholders from the FPO will get bonus share from FPO then the premium price is good. Beema Samiti is planning to bring a capital increment plan for insurance companies. So investing in the FPO of Shikhar Insurance would be a good idea. Overall, the company is good and it has been providing good dividends every year.
