Street signs: HNIs bet on Polycab IPO; Abakkus fund's success, and more

HNIs bet on Polycab IPO 

Bets worth Rs 22,000 crore by wealthy investors are riding on Polycab India’s initial public offering (IPO). The high net worth individual (HNI) portion of the issue has garnered over 110 times subscription. Investment bankers say the higher than anticipated oversubscription has increased the breakeven costs for leveraged investors. They say HNIs stand to make money on the IPO only if Polycab shares list at a premium of 15 per cent. Grey market premiums suggest that the stock could list 20 per cent higher. However, given the volatile market condition, HNIs would be hoping that the sentiment remains positive till the stock lists later this week.

Samie Modak

Abakkus fund garners Rs 1,300 crore

Despite volatile market conditions, Abakkus Asset Management’s maiden alternative investment fund (AIF) offering, Abakkus Growth Fund, has managed to garner more than Rs 1,300 crore from investors, exceeding its earlier target of Rs 1,000 crore-Rs 1,200 crore. Abakkus was founded by former Reliance Mutual Fund chief investment officer Sunil Singhania after he set out on his own last year. The fund will employ a long-only strategy and invest in listed companies, with 90 per cent of the funds in a multi-cap portfolio with a mid-cap bias. The fund’s success spells good news for investment professionals wanting to go it alone.

Ashley Coutinho

Election pause for IPOs

Just as things were beginning to look up for the primary market, there could once again be a pause. Industry players say despite improved sentiment they are averse to launching new deals ahead of the elections. “The response to recent IPOs was encouraging. However, we don’t expect too many IPOs before May 23. However, if the election outcome is favourable, there could be a slew of new offerings,” said an investment banker. During the 2014 general election, the primary market had seen a lull with only one IPO between April 2014 and July 2014

Sundar Sethuraman