Street signs: Glenmark Life GMP at 25%, HNIs in-the-money in Tatva & more

China’s loss, India’s gain 

Index provider MSCI & FTSE have deleted Chinese securities from their indices following an executive order in the US last month. Analysts that track the index composition of indices say the domestic market could see positive inflows from overseas investors on account of this. “While in the MSCI EM index, the (Chinese) securities carry a weight of 4 basis points ($147 million), in the FTSE GIES these securities account for 8 bps ($188 million) weightage. Our assessment suggests, $335 million outflows owing to exclusion of Chinese securities should lead to inflows of $63 million into India between July 26 (MSCI) and July 27 (FTSE),” Sriram Velayudhan, vice-president at IIFL Securities said in a note. In absolute terms, these inflows may not be significant, but analysts say American sanctions on Chinese companies will prompt global investors to look at India more favourably.

Samie Modak

Glenmark Life GMP at 25%

Shares of Glenmark Life Sciences are trading at a premium of 25 per cent in the grey market ahead of its Rs 1,500-crore IPO said people in the know. Glenmark Life’s IPO opens on Tuesday and closes on Thursday. The price band for the IPO is Rs 695-Rs 720 per share. At the upper end, the company will have a market cap of Rs 8,822 crore. Glenmark Life, a fully-owned subsidiary of Glenmark Pharma, plans to issue Rs 1,060 crore of fresh equity in the IPO. Following the IPO, Glenmark Pharma’s stake will come down from 100 per cent to 82.84 per cent.

Sundar Sethuraman

HNIs in-the-money in Tatva Chintan 

Despite high break-even costs, high net-worth individuals’ (HNIs’) bets on IPO of Tatva Chintan Pharma Chem are likely to pay off. The HNI portion of the IPO was subscribed 512 times. As a result, the acquisition cost per share for investors, who have placed leveraged bets, works out to Rs 1,840, 70 per cent above the issue price of Rs 1,083. However, if grey market activity is anything to go by, the stock is expected to double on listing. The IPO of Tatva Chintan, a specialty chemical manufacturer, was subscribed 180 times, second-most this year after MTAR Technologies’ in March.

Sundar Sethuraman