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Call it bad timing. Bosch's entry into the 50-share Nifty is off to a very poor start. The automobile component manufacturer, added to the benchmark index on May 29, has dropped 14 per cent since its entry - the second highest loser after Sun Pharma. In fact, its drop is much higher than the Nifty, down only five per cent in the same time period. On Friday, the stock closed at Rs 20,259, down 0.8 per cent or Rs 165.35. The stock's addition to the Nifty had come under criticism because of its steep valuations. The stock is trading at a price-to-earnings multiple of 62x.
Leading fund house creates war chest for buyout...
With the stock markets turning around in the past year and inflows improving vastly, mutual fund houses are getting ready to expand their businesses. While some are expanding their footprint by increasing their distribution network, a leading fund house is looking to buy ones. According to sectoral sources, the fund house has created a war chest of Rs 500 crore for this purpose. "This fund house has shortlisted four fund houses which have bigger presence in smaller cities. Feelers have also been sent to these fund houses," said a source close to the development.
...But valuation mismatch hits sale of at least one
A foreign asset management company (AMC), which has been on the block for quite some time now, is being termed as a "reluctant" seller by industry players. Sources said the AMC is asking for Rs 600 crore but going by the fund house's asset quality, sectoral players peg the valuation between Rs 150 crore and Rs 200 crore. "Although a few AMCs have shown interest, the asking price is turning out to be a deal breaker," said a sector executive.
