Ujjivan's late surge stuns HNIs

Several high net worth individuals (HNIs) have been caught on the wrong foot with their investments in Ujjivan Financial Services. About 600 such investors had placed leveraged bets worth nearly Rs 17,000 crore in its initial public offering (IPO). Shares of Ujjivan listed at a premium of only 10 per cent, which barely covered their interest costs. As IPO loans are given for a very short time, most of them had to liquidate their holdings. Soon after, Ujjivan's shares saw a spectacular surge of about 60 per cent. On Friday, the stock touched a record high of Rs 400, almost double the issue price of Rs 210, leaving most HNIs red-faced.

Contra call on VRL Logistics?

The share price of VRL Logistics has taken a sharp hit since late May, when the management declared flat sales growth, and more important, its promoters' intention to enter the aviation sector through a separate venture. The stock price continued to go downhill after Chairman and Managing Director Vijay Sankeshwar said he was not worried about investor reaction to the company's plans to enter the aviation sector. But, after falling 32 per cent, the stock price has started inching upwards, with traders beginning to bet on the passage of the Goods and Services Tax Bill, which is expected to benefit the stock.

Amfi writes to Sebi on MF disclosures

To resolve the stand-off between the mutual funds sector and distributors, the Association of Mutual Funds in India, has written to the Securities and Exchange Board of India, seeking relief from the mandatory declaration of distribution commissions to investors in the half-yearly consolidated account statement. It has suggested that investors who give their folio number and name of scheme should be given access to this information only. It has also said in the past three years, only 23,000 new distributors have joined the sector, while 12,000 have left the trade. And, only one-third of the 75,000 distributors are currently active, unlike the insurance sector which has 2.5 million agents.
Joydeep Ghosh