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.