JP Associates to sell treasury shares

Jaiprakash Associates, which raised Rs 1,500 crore through a qualified institutional placement (QIP) last week, has plans for another round of fund raising by selling treasury shares. As new shares won't have to be issued, the earnings per share won't be diluted. The company is holding these shares for the past five years after the merger of Jaypee Hotels, Jaypee Cement, Jaiprakash Enterprises and Gujarat Anjan Cement took place with Jaiprakash Associates in 2009. It had sold part of these shares a few years ago and raised Rs 1,191 crore. The company's fund raising through QIP saw participation from long-only hedge funds. With an existing debt of Rs 28,000 crore, the sale of these shares will help the infrastructure company reduce it.

Action at Balaji Telefilms

Market players have turned bullish on this stock in the past few weeks, after the company invited top investment bankers and stock brokers to a South Mumbai hotel and showcased its existing television programmes and the future pipeline across channels. The company is said to be exploring opportunities in local channels and also building film marketing and distribution capabilities. A banker present in the meeting said the media company's portfolio seems quite robust. The share price, consequently, has seen a 30 per cent jump from Rs 54.80 to Rs 71.90.

Lessons for retail investors from fund houses

Market participants are exploring new ways to teach retail investors the perils on exiting the market in the short term. Recently, a chief executive officer of a fund house has sent emails to investors who exited their systematic investment plans and bulk investments last year. The email will give them details of the money that these investors have lost by selling the mutual fund units. The proposal is a good step, say investing experts.

Contributed by Joydeep Ghosh and Rajesh Bhayani