Street signs: Sebi to boost IPO division

The Securities and Exchange Board of India (Sebi) plans to strengthen its corporate finance division (CFD), which is responsible for vetting and clearing of initial public offerings (IPOs). The move comes after many companies have filed for big-ticket offerings. Some of the recent filings include HDFC Standard Life, Reliance Nippon Asset Management, General Insurance Corporation, New India Assurance and Godrej Agrovet. “The workload on the CFD has increased. To ensure there is no slowdown in the IPO clearing process, Sebi is considering some intra-divisional restructuring,“ said a source. Investment bankers say IPOs worth more than $5 billion (Rs 32,000 crore) will hit the market in the next four-six months.

Samie Modak

MFs bullish on Hindustan Unilever

Mutual fund (MF) houses have been increasing their exposure to Hindustan Unilever for quite some time now. From holdings of less than one per cent in June 2015, they held 1.78 per cent in the company in June 2017. A chief executive officer with a fund house says many fund managers have been acquiring the stock in the past few quarters, as there has some fears of correction in the market. “In such times, it is a good strategy to buy such old favourite defensives and hold them for a longer period,“ says the CEO.

Joydeep Ghosh

Pain and gain in Infosys 

The country’s two biggest fund houses were seen taking divergent views on Infosys in the June quarter. According to data, HDFC Mutual Fund added five million shares of the technology major, while ICICI Prudential MF sold around 1.75 million shares. Overall, mutual fund shareholding in Infosys rose 60 basis points to nine per cent at the end of the June quarter. According to Value Research data, HDFC MF had a total exposure of Rs 5,216 crore through 45 schemes in Infosys, while ICICI Prudential MF had an exposure of Rs 3,286 crore through 48 schemes. The average share price of Infosys during the June quarter was Rs 955, compared to Friday’s closing price of Rs 923.

Samie Modak