 "Prem Watsa's hands-off approach in India")
Canadian billionaire Prem Watsa seems to be following a hands-off approach towards his company, Fairfax Holdings' India investments, say industry sources. In its fourth acquisition in India, Quantum Mutual Fund, where Fairfax will hold a 49 per cent stake, the Canadian firm has refused a board seat and might appoint only an observer, emphasising on its trust in the management. Similarly, in the case of IIFL Holdings, where Fairfax has launched a Rs 1,621-crore open offer for a 26 per cent stake, the Canadian firm doesn't intend to take management control even if its holding surpasses that of IIFL's promoters.
Another listing gain bonanza for investors?
After IndiGo's stellar listing, investors in SH Kelkar and Company, too, are likely to see listing gains of about 10 per cent. Grey market activity suggests shares of the fragrance manufacturer are expected to list about Rs 200 on Monday, against the IPO (initial public offering) price of Rs 180 per share.
However, what is interesting is though the retail portion of the IPO was subscribed only two times, all applicants, irrespective of their application amount, got allotted only one lot (80 shares). This happened because 95 per cent of the 217,578 applications were for only one lot. According to the revised allotment rules, all of them had to be given compulsory allotment.
Market gurus on Sebi's radar
The Securities and Exchange Board of India (Sebi) seems to be turning the heat on market gurus. Sectoral people say the recommendations of many of these gurus, who appear on television channels regularly, come with caveats when they give out investment advice. Recently, while recommending a stock, a leading investment guru kept on emphasising that he was a trader and buys and sells stocks regularly, depending on the market situation. Sectoral sources say in the past, some of these experts have been accused of taking an opposite position from their recommendations. It seems Sebi has expressed its displeasure for such manipulation to the talking heads.
