Mahanagar Gas commands 30% premium in grey market

Shares of Mahanagar Gas are changing hands at a premium of 30 per cent in the grey market, say brokers. Grey market operators are offering investors up to Rs 550 per share of Mahangar Gas, compared to its price band of Rs 380 to Rs 421 apiece. The gas distribution company's initial public offering (IPO) will open for subscription on Tueday and will close on Thursday. 

Debt fund invests 60% in a single paper

A leading fund house's debt scheme, with assets in excess of Rs 12,000 crore, has exposure of almost 59 per cent in a single government bond paper, the 8.13 per cent 2045 government of India (GoI) security. It has another seven per cent in the 8.17 per cent 2045 GoI security. Experts are quite surprised by this move of the fund manager because they feel, given the low trading volumes of government papers of Rs 300 crore- Rs 400 crore daily, the fund manager may find it difficult to exit if there is redemption pressure. "Since the market, currently, does not have the depth to absorb high quantities of government paper, it is surprising the fund manager has taken such a position," says an expert.

Dalal Street's late boomers

An initial public offering on the Dalal Street, typically, sees a huge rise on its first day of listing if the market perceives it to be undervalued. However, a new trend seems to be emerging where stocks are ending tepid on the first day but gaining altitude subsequently. This was witnessed in stocks like InterGlobe Aviation and Ujjivan Financial Services. The latest entrant to this list is e-commerce company, Infibeam Incorporation. The stock listed close to its issue price and even went lower in intra-day trades. However, in less than three months of listing, it has gained a whopping 58 per cent.