In the past few years, investors have avoided shares of infrastructure companies. Last year when Dilip Buildcon was planning its initial public offering (IPO), foreign bankers advised the firm to postpone the issue, as they were not able to attract enough interest from foreign investors. With IPO subscription of 15 times and listing gains of 15 per cent in Dilip Buildcon, coupled with buoyant secondary market, the tide for infra stocks could be turning, say bankers.
Grasim-Nuvo merger: All eyes on domestic fund managers
After sharp criticism from foreign brokerages and investors, domestic fund managers are beginning to question the merger of Aditya Birla Nuvo and Grasim. Fund managers are already holding discussions on the position that they should be taking on the deal as minority shareholders. "Fund managers will use the long weekend to understand the finer points of the deal before they take a position next week," says the chief executive officer of a large fund house. On Friday, a day after the deal was announced, Aditya Birla Nuvo's stock fell 17.4 per cent, while Grasim's stock closed flat.
Finance ministry may stay put on new KYC system
Despite the market regulator's reservations over the new Central Know-Your-Customer (C-KYC) system, the finance ministry isn't likely to budge, say industry players. The ministry isn't keen on going back on C-KYC, as it is considered a key reform for the financial sector. "Although, there are several issues that need ironing out, the ministry is not in favour of rolling back the move," says a source. Since August 1, regulators have implemented C-KYC. The Securities and Exchange Board of India had written to the finance ministry over the differences between its KYC and the new process.
