Widely read:
The recent public offers saw renewed action in the textiles and apparel segment with six new companies listing on the bourses. However, the timing of the listing couldn’t have been more wrong and the ones that struck gold were limited to the IT and telecom sector. The month also saw the much-awaited listing of Idea Cellular and Mindtree Consulting. Mindtree has outperformed analysts’ expectations even when the market was in the grip of the bears. Idea has shown an absolute return of 26.27 per cent from its offer price. Idea IPO generated a lot of interest from domestic mutual funds as well with Rs 19.5 crore invested by 26 schemes. Mindtree consulting on the other hand has not seen any activity from mutual funds.
The poor show by Broadcast Initiatives has been primarily due to concerns over the lack of visibility of its Janmat channel. The future performance of the company hinges on the success of the current revamping drive of its news and views channels. The other big laggard, Oriental Trimex, is engaged in the processing, cutting and polishing of marble and granite. The company has emerged as an ancillary to the construction boom in the country. One of the reasons for its poor performance on the bourses is that it was valued much higher than its peers.
Euro Ceramics is another stock to watch out for as the company is one of the many beneficiaries of the construction boom, emerging as a leading producer of vitrified tiles.
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