Street signs: Reliance Mutual Fund leaves gains on the table

Anil Ambani-promoted Reliance Capital, will soon launch the IPO of Reliance Nippon Asset Management

Anil Ambani-promoted Reliance Capital, which would be soon be launching the initial public offering (IPO) of Reliance Nippon Asset Management, seems to have pleased investment bankers with the pricing of the issue. “The valuations are 20-25 per cent lower than what was earlier envisaged. The promoters have been considerate and have left gains on the table,” said an investment banker. This is the first IPO by the Reliance group since Reliance Power a decade ago. A lot of investors had lost money in the mega offering, whose launch had coincided with the 2008 stock market cash. This time around investment bankers say the group has been more careful with the pricing.

Samie Modak

More fund houses eye pension money

Several fund houses are trying to convince pension manager Employees’ Provident Fund Organisation (EPFO) to invest through their exchange-traded funds (ETFs) including a mid-sized state-owned fund house. The EPFO officials also conducted a preliminary check of the systems and investment processes of the public sector fund house. ETF schemes run by SBI MF and UTI MF have cornered most of the EPFO inflows, with SBI MF mopping up about three-fourths of the investment, as per sources. Earlier this year, the retirement fund body gave its nod to hike the investment limit in ETFs to 15 per cent from 10 per cent, which is expected to bring in an incremental Rs 18,000-20,000 crore into equities this financial year.

Ashley Coutinho

KIFS Financial hits upper circuit

The KIFS Financial stock, which had seen total volumes of 16,300 shares in September, has been hitting the upper circuit regularly since October 3. In the last nine trading sessions, the company has risen from Rs 62.80 per share to Rs 92.50 per share – a rise of 47.29 per cent. The company was in the news recently after a news website wrote the story that the company had extended an unsecured loan of Rs 15.78 crore to Jay Amit Shah’s company Temple Enterprise Pvt Ltd. Jay Amit Shah is BJP President Amit Shah’s son.  

Joydeep Ghosh