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Street signs: New rules may allay FPI concerns, Neogen IPO, and more

Shares of Neogen Chemicals are changing hands at a 10 per cent premium in the grey market

Ashley Coutinho Jash Kriplani & Samie Modak 

Street signs: New rules may allay FPI concerns, Neogen IPO, and more

New rules may allay concerns

A circular on accessing data of (FPIs) from the KRA (Registration Agency) database last month asked 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 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 of FPIs and protect sensitive data if implemented properly,” said a person dealing with foreign investors.

Ashley Coutinho

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 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 fell 19 per cent, giving up a large part of the gains. Brokers say that the 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.

Jash Kriplani

Neogen commands 10% premium

Shares of 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.

Samie Modak

First Published: Sun, April 21 2019. 22:18 IST
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