Heard on the Street: Sugar stocks get a booster shot on levy hike

Sugar stocks get a booster shot on levy hike

Some mutual funds, including Star Sign Mutual Fund and market operators, are believed to be buying shares of sugar companies. The news that the government is planning to increase levy sugar prices by 30% for the current September-October season has spurred the buying, according to dealers.

The step will help sugar companies post better profits in this quarter. Balrampur Chini surged close to 10% to finish Rs 86.15, supported by heavy volumes. According to dealers, most of the purchases by mutual funds and operators are for the short-term and they could even offload their positions within a week.

IDFC prices QIP at Rs 168.25 a share

Infrastructure Development Finance Company(IDFC) is learnt to have priced its qualified institutional placement(QIP) at Rs 168.25 apiece. India’s leading infrastructure lender plans to mop up close to $575 million through the issue. It has roped in four bankers including Credit Suisse, Morgan Stanley, CLSA and IDFC-SSKI to manage the share sale. The stock closed at Rs 169.90 on Monday, up 0.95 % over the previous close.

(Contributed by Harish Rao & Reena Zachariah)