Street signs: Savvy investors use InvITs to exit mutual funds without cost

Several mutual fund houses had to obtain one-time shareholder consent to invest in InvITs

Several mutual fund (MF) houses had to obtain one-time shareholder consent to invest in Infrastructure Investment Trusts (InvITs). The approval had to be taken at the scheme level. According to  the Securities Exchange Board of India’s (Sebi’s) guidelines, fund houses had to waive off exit load on unit holders who didn’t wish to continue with the scheme. According to market players, several savvy investors used this as an opportunity to exit, saving around 100 basis points in cost.

Chandan Kishore Kant   

Hudco grey market premium at 30% 

Shares of state-owned Housing and Urban Development Corporation (Hudco) are changing hands at 30 per cent premium in the grey market ahead of its Rs 1,200-crore initial public offering (IPO). Market players say operators are offering up to Rs 80 per share for the financing company. The price band for the issue is fixed at Rs 56-60 per share. The government is offering an additional discount of Rs 2 to retail investors. Going by the grey market signals, the first public sector IPO in the past five years is likely to be a big hit. 

Samie Modak 

Senior-level exit at a top fund house?  

A leading fund manager from one of the top 10 fund houses is on his way out, say industry players. However, the fund house, a joint venture between a leading domestic and foreign asset manager, seems to be trying its best to retain him. “The fund manager was to exit by the end of next month. But, the fund house is trying its best to convince him otherwise,” said a person with direct knowledge of the development.

Chandan Kishore Kant