NSE IPO puts spotlight on IFCI
The National Stock Exchange’s (NSE) mega initial public offering (IPO) has put the spotlight on state-owned finance company IFCI, with its shares climbing 20 per cent, last week. NSE’s IPO is pegged to be around Rs 10,000 crore and will value the country’s largest exchange at Rs 40,000 crore. At these valuations, IFCI’s stake in the NSE will be valued at Rs 1,600 crore. IFCI, along with its associate firm, State Holding Corporation of India, owns a little over four per cent in the NSE. The market capitalisation of IFCI, which will get a part-exit in the IPO, is Rs 4,500 crore.
Samie Modak PoS boost for TVS Electronics
TVS Electronics has emerged as a big beneficiary of the government’s digitisation drive. The shares have doubled in the past fortnight. TVS Electronics makes point of sale (PoS) terminals and is also a distributor of smartphones. With the Centre looking to install 200,000 PoS devices in villages, it can be a major gainer. Also, Reliance Jio’s Welcome offer, which provides free internet and calls till March 2017, has boosted sales of 4G-enabled devices.
Mayank Patwardhan Micro-lender sees investor exits
Some key institutional investors and funds have turned bearish on Equitas Holdings after the government’s demonetisation drive. The stock has lost close to 19 per cent since November 8. These are the funds which entered Equitas at the time of IPO and are known to be long-term investors. However, the possibility of a surge in bad loans due to demonetisation forced these funds to reconsider their position in the stock. “The stock rose close to 100 per cent since listing, as foreign investors had shown a lot of interest in the stock. However, the optimism seems to be fading and some of the IPO investors have pared their holdings,” said a broker. Equitas is a microfinance lender and small finance bank’s licencee.
Pavan Burugula