The Telegraph
Since 1st March, 1999
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Small investors savour gains

Mumbai, July 9: Maruti Udyog has brought the smile back on the faces of small investors pussy-footing their way to a market where many lost their shirts in the past.

Its record-busting flotation saw several investors buy a share for the first time in their lives. It has not been a bad experience so far. Not, if the scrip gains more than 31 per cent to close at Rs 164.05 — against the issue price of Rs 125.

Many investors have already made a neat sum as they sold the stock to legions desperate to own a chip of the country’s largest car-maker. Some are more patient, though. They will part with their shares at higher prices.

But, who are the sellers and who are the buyers after all' Who’s making a fast buck' Arun Kejriwal of Kejriwal Research and Investment Services believes the sellers today were mostly retail investors, while buyers were institutions that failed to get in through the IPO.

“The volumes will not remain in the stratospheric levels of Rs 850 crore,” warns Kejriwal. He predicts profit-taking as investors move to cash in and as the novelty factor wears off. Traded volumes on bourses could, he says, recede to a third of the tally notched up in the debut. This could mean a figure close to Rs 250 crore over the next few days.

While there are those waiting to make a killing, the ranks of those who want to get in are swelling. Mutual funds, for instance, could buy the Maruti share after they quoted a low price in the IPO and missed out. By contrast, foreign institutions and retail investors who bid high will be looking to get out.

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