MC Inside Edge: GMR shines in second innings, Street turns unkind to Mankind, fledgling carrier readies engines for D-Street flight

Know about all the major deals and all the inner goings-on from Dalal Street.

Second innings

Fallen angel GMR Infra is slowly gaining favour with fund managers and big ticket traders, this diarist hears. The White Knight’s entry last year and the recent buy recommendation by a leading foreign brokerage are slowly turning the tide in favour of the airport operator. The improvement in revenues has been gradual, but losses are narrowing. Valuation has doubled over the last six months and market chatter is that this will work to the advantage of any other airport operator planning to come out with an initial public offering in the near future.

The unkindest cut

Mankind shares were on a roll…till the company approved a proposal last month to raise up to Rs 7,500 crore through equity issuance or through other instruments. Traders and fund houses are not happy with the company looking to raise funds again within a year of going public. More so, if the funds are for a big-ticket acquisition which may or may not contribute to earnings immediately, but would definitely constrain management bandwidth till the integration process is complete. Institutional holding in the stock has doubled over the last couple of quarters, and that has been instrumental in driving up prices. With public holding at barely 4 percent, Mankind may have to pay heed to what fund managers are trying to hint at.

Destination D-Street

IPO plans of this fledgling aircraft in the Indian skies is gathering steam. Chatter is that two rounds of discussions have already taken place and the carrier should make a Dalal Street landing before this year ends.