Street signs: Zomato GMP at 15-18%, beeline of AIFs at IFSC, and more

Zomato GMP at 15-18% 

Shares of online food delivery company Zomato are changing hands at a premium of 15 to 18 per cent in the grey market days before its Rs 9,375-crore IPO. Market players said the premium has come off from 25 per cent levels last week. Zomato’s IPO opens on Wednesday. The company will allot shares worth up to Rs 4,200 crore to anchor investors on Tuesday. This will bring down the IPO size to under Rs 5,200 crore. The quota for retail investors — those investing up to Rs 2 lakh — for this IPO is only 10 per cent, against 35 per cent in normal IPOs. This is because the company doesn’t meet the profitability criteria laid down by Sebi.

Analysts positive on thermal power cos 

Shares of thermal power producers are likely to benefit from the rise in power demand, say analysts. The power demand had witnessed substantial growth due to factors, such as easing of lockdowns, hot weather conditions in the northern and eastern regions, and a surge in agricultural demand. Experts say investors can keep an eye on stocks like NTPC, CESC, and Coal India. Higher thermal demand is expected to improve growth in coal offtake further. Though renewable power generation is on the rise, it remains substantially low and erratic. As a result, load balancing is being done through higher hydro and thermal generation. The high demand phase is likely to persist until the strengthening of monsoon, particularly in north India in mid-July.

Beeline of AIFs at IFSC 

As many as 25-30 alternative investment funds are lining up to register at the International Financial Services Centre (IFSC) in the next few weeks, said people in the know. This follows ease in regulations over the past few months, which has spurred interest among funds to set up shop at the international centre. A few days back, IFSC did away with the need for managers or sponsors to have continuing interest in AIFs domiciled in IFSC and allowed them to invest in units of domestic mutual funds as well as those of other FATF-compliant jurisdictions. In May, the RBI had allowed sponsor investments by Indian entities in AIFs set up in IFSC to come through the automatic route.