Street signs: Retail investors cash in on Hindustan Copper

Govt had set the floor price for the share sale at an 8% discount to the prevailing market price

Retail investors cash in on Hindustan Copper

Retail investors cashed in on the arbitrage opportunity in Hindustan Copper's offer for sale (OFS) last week. The government had set the floor price for the share sale at an eight per cent discount to the prevailing market price. Retail investors were offered an additional five per cent discount on the offer price. While the company's share price fell sharply on the OFS announcement, it still left an arbitrage opportunity for retail investors to pocket gains between five and eight per cent. Savvy retail investors sold shares in the secondary market and applied in the OFS at a much lower price. No wonder, the retail portion was oversubscribed, while institutional response remained less than expected.

Market enters resistance zone 

After a sharp rally, the market may remain range-bound, as it has entered a key resistance zone, say technical analysts. For the Nifty50 index, the resistance level is 10,070-10,150, from where it saw a pull back twice last week. Fortunately, it also has strong support at 10,020 and therefore it could trade in a narrow band of 10,030 to 10,120, experts say.

Shares fall as anchor lock-in ends 

Shares of AU Small Finance Bank, Central Depository Services (CDSL) and GTPL Hathway fell between five and 17 per cent last week, even as the benchmark indices moved up marginally. Market players say, the drop was on account of selling by anchor investors following the end of the 30-day lock-in period. The trading volumes in each of the three counters also saw a spurt last week. Shares of AU Finance and CDSL are still up 55 per cent and 110 per cent over their respective initial public offering price, while those of GTPL Hathway have slipped 16 per cent.