New rules may allay FPI concerns
A circular on accessing data of foreign portfolio investors (FPIs) from the KRA (KYC Registration Agency) database last month asked KYC Registration Agencies to lock personal information with regard to beneficial ownership. Though it will delay the account opening process as the intermediary will have to wait for approval from the FPI or the global custodian to allow the download, experts believe this is a step in the right direction. “This will not allow the unscrupulous usage of KYC of FPIs and protect sensitive data if implemented properly,” said a person dealing with foreign investors.
Piggybacking Damani not healthy
Ace investor Radhakishan Damani recently bought Rs 14 crore worth of shares of the micro-cap company — Foods & Inns — through his investment vehicle Derive Investments. The stock ran up 42 per cent as the bulk deal purchase by Damani attracted followers to this little-known company. However, late entrants in the counter have been caught on the wrong foot as the stock fell 19 per cent, giving up a large part of the gains. Brokers say that the stock could see a further run-up if there is more visibility on its earnings potential. The Mumbai-based company manufactures and exports processed food items such as fruit pulps, purees and vegetables.
Neogen commands 10% premium
Shares of Neogen Chemicals are changing hands at a 10 per cent premium in the grey market. The speciality chemicals company’s Rs 140-crore initial public offer (IPO) opens on Wednesday. A spate of good, new listings including Polycab India and Metropolis Healthcare has boosted grey market activity. “Small IPOs rarely see any traction in the grey market. However, the back-to-back good listings have buoyed activity. Investors are once again looking at IPOs as a way to make a quick buck,” said a market observer.