Street signs: Galaxy Surfactants IPO, Praj Industries stock, and more

Galaxy Surfactants' Rs 9.3-billion initial public offer, the biggest this year, will open for subscription on January 29

Galaxy Surfactants at 30% premium

 

Shares of chemicals manufacturer Galaxy Surfactants are changing hands in the grey market at 30 per cent premium. The company’s Rs 9.3-billion initial public offer, the biggest this year, will open for subscription on January 29. The price band for the IPO is Rs 1,470 to Rs 1,480 per share but grey market operators are willing to pay as much as Rs 2,000 apiece, said market players. Meanwhile, the premium on the recently-concluded IPO of Newgen Software and Amber Enterprises have come off slightly. Traders say this is because the small and mid-cap stocks have not participated in the recent rally.

 

Pavan Burugula

 

Market players get bullish on Praj

 

With the Centre making its intention clear that cars would, sooner or later, have to run on bio-fuels or batteries, many market players are seeing an opportunity in Praj Industries. The company manufactures bio-fuel technology machines. Shares of the company have been rising steadily in the past three months and are up 54 per cent – from Rs 71 to Rs 110. Union transport minister Nitin Gadkari has been pushing for greater usage of bio-fuels to reduce the Rs  7-trillion oil import bill.

 

Joydeep Ghosh

 

Nifty 11,500 on the cards?

 

The rally in the Indian market seems far from over. According to derivatives data, one of the highest open interest for Nifty is currently at 11,500 strike. This means traders are not ruling out another 400-point (3.6 per cent) rally in February. Meanwhile, the 10,800 strike too has high open interest. “The market could see huge fluctuations following the Budget announcements. Traders will have to brace for high volatility,” said a derivatives analyst.

 

Samie Modak