Street signs: New issues command attractive GMP, Religare stocks & more

New issues command attractive GMP

The two IPOs that open for subscription this week are commanding attractive premia in the grey market. According to market sources, shares of Clean Science and Technology, a manufacturer of specialty chemicals, are changing hands between 40 per cent and 50 per cent over its offer price in the unofficial market ahead of its Rs 1,546-crore IPO. GR Infraprojects’ shares, too, are changing hands at a premium of more than 30 per cent. Both issues open on Wednesday and close on Friday. The price band for Clean Science IPO is Rs 880-990 per share, while that for GR Infra is Rs 828 to 837 per share. 

Religare Enterprises on investor radar

Shares of Religare Enterprises have jumped more than 50 per cent in the past six weeks amid the announcement that the company would raise Rs 570 crore through a preferential share allotment. Not just retail investors but FPIs too seem to have turned bullish on the counter. According to the website of NSDL, a firm that monitors overseas investment in listed companies, the foreign investment limit in Religare Enterprises has neared the maximum permissible limit of 30 per cent of its total equity. On June 11, NSDL put the stock on the so-called red flag list, which gets activated whenever the foreign holding is less than 3 per cent of the permissible limit.

Analysts back power sector lenders

Power sector financiers, Power Finance Corporation (PFC) and REC, are likely to benefit from the Union government's new scheme to improve operational efficiencies and financial sustainability of all discoms and power departments, say analysts. PFC and REC are the nodal agencies of the scheme for 19 and 16 states and UTs, respec­tively. Moreover, with both peak and daily energy demand at all-time highs, the timing of the reform approval is likely to revive capex in both generation and distribution. Analysts said the improvement in the health of state discoms would structurally benefit the two key lenders.