Heard on the street
THE Mumbai-based retail brokerage house, Sharekhan, has deferred its initial public offer (IPO) plan citing lower valuations.
By ET Bureau |
Sharekhan shelves IPO plan, for now
THE Mumbai-based retail brokerage house, Sharekhan, has deferred its initial public offer (IPO) plan citing lower valuations. The firm had initiated talks with merchant bankers, including IDFC-SSKI and Enam Securities for the public issue.
“We have shelved the IPO plan... we are focussing on building the company further,” said an official familiar with the development. Citigroup Venture Capital International (CVCI), the private equity arm of Citigroup, holds a significant stake in Sharekhan while other investors include Baring Asia and IDFC.
Sebi ‘freebies’ order falls flat
The Sebi order restraining fund houses from doling out freebies and gifts to distributors has not really served the purpose. According to industry sources, a private bank-promoted fund house took a large number of distributors on a junket to Rome.
The fund house is believed to have timed the trip before April 1, as it will be able to group the expenses incurred on the trip as marketing expenses.
Post-April, fund houses have been asked to bear marketing expenses from their own pockets; it can no longer be charged to the expense ratio of the fund, which had been the case all along. A state-owned mutual fund has been among the big commission payers, handing out as much as 2.5-3% to distributors for selling its schemes.
Sesa Goa seen bottoming out
The Sesa Goa stock closed flat at Rs 390.75 in Friday’s bearish sentiment, as some deep pocket investors feel it may have bottomed out for the time being. The shares touched a 52-week high of Rs 494.30 in the first week of April riding the upswing in iron prices.
However, the shares have been declining since then as many investors felt that the high iron ore prices were unsustainable. A leading domestic insurer, Fun Life Insurance, is said to have bought nearly 10 lakh Sesa Goa shares during the week.
Incidentally the fund is said to have sold a sizeable chunk of the stock at higher levels last month. The purchases helped stabilise the stock, which was being dumped by a few foreign institutional investors. The US-based AllianceBernstein is said to have been one of the sellers. Analysts tracking the stock expect it be rangebound near term, as they say the stock is, at best, fairly valued, despite the steep fall over the past one month.
Contributed by Reena Zachariah, Shailesh Menon & Santosh Nair
THE Mumbai-based retail brokerage house, Sharekhan, has deferred its initial public offer (IPO) plan citing lower valuations. The firm had initiated talks with merchant bankers, including IDFC-SSKI and Enam Securities for the public issue.
“We have shelved the IPO plan... we are focussing on building the company further,” said an official familiar with the development. Citigroup Venture Capital International (CVCI), the private equity arm of Citigroup, holds a significant stake in Sharekhan while other investors include Baring Asia and IDFC.
Sebi ‘freebies’ order falls flat
The Sebi order restraining fund houses from doling out freebies and gifts to distributors has not really served the purpose. According to industry sources, a private bank-promoted fund house took a large number of distributors on a junket to Rome.
The fund house is believed to have timed the trip before April 1, as it will be able to group the expenses incurred on the trip as marketing expenses.
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Post-April, fund houses have been asked to bear marketing expenses from their own pockets; it can no longer be charged to the expense ratio of the fund, which had been the case all along. A state-owned mutual fund has been among the big commission payers, handing out as much as 2.5-3% to distributors for selling its schemes.
Sesa Goa seen bottoming out
The Sesa Goa stock closed flat at Rs 390.75 in Friday’s bearish sentiment, as some deep pocket investors feel it may have bottomed out for the time being. The shares touched a 52-week high of Rs 494.30 in the first week of April riding the upswing in iron prices.
However, the shares have been declining since then as many investors felt that the high iron ore prices were unsustainable. A leading domestic insurer, Fun Life Insurance, is said to have bought nearly 10 lakh Sesa Goa shares during the week.
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Incidentally the fund is said to have sold a sizeable chunk of the stock at higher levels last month. The purchases helped stabilise the stock, which was being dumped by a few foreign institutional investors. The US-based AllianceBernstein is said to have been one of the sellers. Analysts tracking the stock expect it be rangebound near term, as they say the stock is, at best, fairly valued, despite the steep fall over the past one month.
Contributed by Reena Zachariah, Shailesh Menon & Santosh Nair
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