Street signs: Large AMC IPOs can be delayed, MFs buy Timken India & more

Several high net-worth individuals are said to be lapping up shares of cotton yarn manufacturers amid a spike in yarn prices

Large AMC IPOs can be delayed

There is a strong buzz in the market that a handful of asset management companies (AMCs) are getting ready to launch their IPO. However, if industry chatter is anything to go by, a large fund house has hit the pause button on its listing plans. This fund house has seen its assets grow at a very healthy clip. The thinking within the fund house is that launching an IPO maybe a year later will fetch much better valuations. Also, one joint venture partner isn’t on board on selling any stake at this juncture.

Yarn stocks on HNI radar
 

Several high net-worth individuals (HNIs) are said to be lapping up shares of cotton yarn manufacturers amid a spike in yarn prices. The onslaught of Covid-19 has led to higher demand for fabrics and home textiles worldwide. This, in turn, has led to strong global demand for yarns. On the domestic front, a shortage of yarn, a key raw material in manufacturing garments, especially knitwear and hosiery, has resulted in prices of yarn hitting an 8-year high at the beginning of 2021. Domestic yarn prices have shot up by nearly 50 per cent in the past four-five months. Shares of yarn companies, such as Ambika Cotton, Amarjothi Spinning Mills, and Nahar Spinning Mills, have done well over a six-month period. However, they have seen some correction over the past month, along with the broader market. Industry players say this has put the stocks once again on HNI radar.

MFs buy Timken India

At least large mutual funds (MFs) have bought shares of Timken India. On Friday, HDFC MF and Nippon India bought shares worth Rs 125 crore and Rs 27 crore, respectively, shows the bulk deal data released by stock exchanges. The shares were bought at Rs 1,360 apiece. Shares of Timken India last closed at Rs 1,385 after gaining 6 per cent during the week. MNC firm Timken India is a manufacturer of bearings and power transmission products. Analysts say after a sluggish FY21, the company could bounce back strongly in FY22.