Street signs: CIL sees investor churn, big investors buy Himadri, and more

Coal India sees investor churn 
 

The strong gains in the Coal India stock in 2018 has been accompanied by domestic institutions increasing their exposure in the counter. Coal India has gained 16.2 per cent in the year so far – the most among the Sensex companies. This rally has seen three big-ticket institutions – ICICI Prudential, Aditya Birla Sun Life and HDFC Mutual Fund – up their stake in the coal producer. Interestingly, leading foreign investor, BlackRock has sold close to 10 million shares of Coal India in March. This investor churn is expected to continue in the medium term, even as analysts are expecting another 10 per cent upside in the stock over the next one year.

Pavan Burugula

New IPOs: Grey-market premium falls
 

The activity in the primary market has gathered steam with as many as a six companies expected to launch their initial public offerings (IPOs) this month. The grey-market premiums for key IPOs, however seem to be moderating. According to grey-market operators, the premium for shares of both Bandhan Bank and Bharat Dynamics, who will launch their IPOs this week, are in single-digits. “The weakness in the secondary market and pricey valuations are the reason for tepid grey market premiums,” said a broker. 

Samie Modak

 

Big investors buy Himadri Speciality  

Himadri Speciality Chemical got good attention from investors in the last week after some institutions, including mutual funds, bought the stock once it dipped to Rs 141. ‘’The company has been doing quite well. It reported a net profit of Rs 700 million in December quarter, up from Rs 200 million in September quarter. It could be a good long-term bet,’’ said a fund manager. There is also a buzz in the market that the company has repaid its long-term debt of Rs 1 billion. The stock closed at Rs 148 on Friday, up 1.65 per cent.  

Joydeep Ghosh