Street signs: Macrotech GMP muted, PLI boost for AC companies & more

Macrotech Developers GMP muted
 
Grey market operators have turned cautious after a spate of weak listings last month. Shares of Macrotech Developers, earlier known as Lodha Developers, are changing hands in the grey market at a premium of just 3-5 per cent, ahead of itsRs 2,500 crore IPO, which opens on Wednesday. The company has priced it between Rs 483 and Rs 486 per equity share. At the top-end of the price band, Macrotech will have a post-diluted market capitalisation of Rs 21,740 crore, making it the third-biggest listed realty company, after DLF and Godrej Properties.
 
PLI boost for AC companies

 

With the markets turning range-bound, investors are looking for bottom-up investment opportunities. A few investment advisers are asking their clients to buy shares of companies manufacturing air conditioners (ACs). They say Voltas, Blue Star, and Amber Enterprises are best placed to benefit from the proposed Rs 5,100-crore production-linked incentive (PLI) scheme for AC manufacturing. The scheme will provide an incentive to manufacturers to boost local production. Currently, the domestic AC industry imports 70 per cent of its requirements. The PLI scheme can result in an incremental revenue opportunity of Rs 10,500-Rs 16,200 crore for India-based manufacturers, estimates Kotak Institutional Equities.        

 
Arbitrage opportunity in NIIT
 
NIIT has announced a Rs 237-crore tender route buyback at Rs 240 per share. Analysts say the share repurchase programme provides an attractive arbitrage opportunity to retail investors. The buyback price is 45 per cent higher than NIIT's last closing price of Rs 165.35 on the BSE. Analysts say the acceptance ratio for retail investors can be over 20 per cent. Existing shareholders can look to tender their shares if the spread between the buyback price and the market price remains elevated, say analysts. The buyback will remain open between April 12 and April 28.