Street signs: Manpasand shares, GAIL bonus traps investors, and more

Manpasand fall hits PE, FPIs, MFs

The sharp slide in Manpasand Beverages shares has pinched some mutual fund investors hard. At the end of April, fund houses with exposure to the stock included SBI Mutual Fund (MF), Motilal Oswal MF and ICICI MF, according to Prime MF Database. Private equity firm SAIF Partners and foreign portfolio investors Baron Emerging Markets Fund, New Horizon Opportunities Masters Fund and ICG Q, too, had stakes in the company in March 2019. Manpasand shares have continued to hit lower circuit despite its Chairman Dhirendra Singh willing to give up his position. Singh was arrested amid allegations of creating fake units and tax evasion charges of Rs 40 crore. In the last year, the stock has fallen 73 per cent after its auditor resigned and there were reports that the management was not willing to share data.

Jash Kriplani

MFs divided over Motherson Sumi  

Shares of Motherson Sumi have hit a downward slope, sliding 30 per cent from their April highs. The investment community seems to be divided over the firm’s outlook. During the June quarter, fund houses such as SBI Mutual Fund (MF), LIC MF, Invesco and Tata MF were seen aggressively offloading shares of the auto component maker. On the other hand, peers such as DSP MF, UTI MF and Kotak MF increased bets after the sharp correction.          

      

Samie Modak

GAIL bonus traps investors

GAIL India shares witnessed a sharp uptick, accompanied by high volume, following its results announcement on May 27. While the March quarter earnings were disappointing, the company offered some balm in the form of 1:1 bonus. Post earnings announcement, most analysts initiated buy on the stock citing “steady outlook”. However, investors who took positions in the counter were caught on the wrong foot. Shares of the company slumped after the gas regulator set tariff for one of GAIL’s key pipeline network at less than half of what company had sought.

Samie Modak