Endurance Technologies' 40-per cent gain on listing was expected to encourage investors to bet on the next initial public offerings (IPOs) of PNB Housing and Varun Beverages. However, grey market activity suggests muted listings for both firms, whose IPOs come just ahead of Diwali. Market players say both companies' shares are trading at eight-10 per cent premium to their IPO prices in the grey market.
Samie Modak
Retail investors miss Mahanagar Gas rally
Small shareholders, as usual, have missed out on good returns from an Initial Public Offering (IPO) by exiting early. The latest shareholding data of Mahanagar Gas show that the retail portion has more than halved during the September 2016 quarter. The share price had soared nearly 30 per cent after its IPO in July. Since then, it has continued its northward journey and is up around 90 per cent from its issue price. The company also paid a hefty dividend of Rs 17.5 apiece last month, which clearly shows those exiting the stock have been big losers.
Deepak Korgaonkar
Property firms target MFs
If stiff competition from insurance and fixed deposits weren't enough, mutual funds are now being targeted by builders as well. A recent advertisement by a builder says: "Investing Rs 25,000 per month? Aim higher than just mutual funds." The advertisement goes on to add that investing in a one bedroom, hall and kitchen in Bengaluru would be more profitable. "It seems builders are getting nervous with the consumer education that the mutual fund industry is doing. While our assets are rising, their sales haven't been the best," says a senior executive of a fund house.
Joydeep Ghosh
