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Grow Mudra's Inside Edge

19 Apr , 2024 By : Debdeep Gupta

What’s the idea?

Vodafone shares continued to be on the bulls' radar even as the Street is divided on whether the capital-raising can change the company's fortunes for the better. Logically, an impending issue of fresh shares should put pressure on the price. Meanwhile murmurs about a powerful corporate looking to gain a toehold in the telecom sector through the Vodafone FPO are doing the rounds. The presence of too many anchor investors is leading to chatter that some of the foreign investors may be proxies for this corporation. The average investment per anchor investor works out to Rs 72 crore, and many investors may have invested less than Rs 50 crore. Some of the local fund houses may be marking attendance given long-standing business relations, but what about the foreign investors investing less than $10 million?

Quick exit

Coffee Day Enterprises was in the limelight on Tuesday after former JSW Energy CEO Prashant Jain’s personal investment vehicle Tikri Investments picked up a 1.89 per cent stake in the company. This fanned speculation that a rerating could be on the cards, as the company’s negatives were out there for all to see and that someone of Jain’s calibre would have done his homework and gotten in for the long haul. Imagine then the surprise of the Street, as Tikri dumped nearly the entire quantity at a small loss on Thursday. But Jain is not the only one said to have gulped coffee by the potful on Tuesday. There is talk about the Sheikh from the late Big Bull’s inner circle also being part of the action.

Bull in Indiabulls

Indiabulls Housing Finance shares have come off post the rights issue despite the stock having the support of some of the savvy names on Dalal Street, the Honey Tongued fund manager and Wealth God among them. Now Desi Soros too is learnt to have taken a shine for the stock. He is said to be steadily accumulating the stock without drawing any attention. But those looking to rise on Desi Soros’s coattails beware: he can as easily slip out of any stock if he feels it is likely to stagnate for a while.

School days

In an uncertain market, sometimes simple ideas work the best. The Bata stock has been seeing interest from HNIs of late. The strategy: the reopening of school in June usually gives a bump to the stock as demand for school shoes goes up. This has led to the stock rising between April and July in most of the previous years.