PSU execs, i-bankers scout for investors in London
Top executives of Oil and Natural Gas Corporation, Coal India and their investment bankers are going on roadshows to London next week. According to sources, the government has asked the bankers to make presentations to overseas funds on these two firms. The Centre is looking to offload significant stake in these firms next year. Bankers also said the exchequer might not have to go for another divestment if share sales in these two companies are successful. The government has so far managed to garner only Rs 23,519 crore against the Rs 56,500 crore envisaged in the Union Budget.
Pavan Burugula
Grey market players default on payment
Unavailability of cash due to demonetisation has brought the initial public offer (IPO) grey market activity to a standstill. Recent issues, including Sheela Foam and Laurus Labs, found no takers. The real impact was on the previous two issues, of PNB Housing Finance and Endurance Technologies. Though their IPOs took place before demonetisation announcement, sources say grey market operators defaulted on payments to investors in these two IPOs due to cash shortage. The IPO grey market activity won’t return to normalcy in a hurry, they add.
Samie Modak
Demonetisation hits SIP processing
While the mutual fund sector is witnessing healthy inflow through systematic investment plans (SIP), the load on the banking system due to demonetisation has impacted SIP flows that don’t use an electronic clearing service. “SIP applications in a few hundreds of thousands are pending at banks’ end. Probably due to the demonetisation pressure, certain public sector banks have not been able to process these investments,” said an industry player.
Samie Modak
