Tuesday, September 22, 1998
UTI Bank's agressive IPO
The IPO of UTI Bank is agressively priced but at the same time the pricing has been carefully thought out. One, before investing in UTI Bank investors are bound to weigh the returns on past IPOs from banks here the score is quite good, if one considers issues such as Corporation Bank, Jammu & Kashmir Bank and the State Bank of Bikaner and Jaipur. Second, the Unit Trust of India has been a big buyer of bank stocks in the run-up to the UTI Bank issue, probably to shore up valuations (part justification for the relatively high valuation of the UTI Bank IPO).
Swadeshi growth with videshi investments
Finance minister Yashwant Sinha seeks to talk up the economy. Commerce minister Ramakrishna Hegde throws up his hands in despair, saying that there is no scope for a breakthrough in exports in the short term. Jaswant Singh, deputy chairman of the Planning Commission, draws attention to economic development in the context of `nuclear diplomacy' but takes care to leave unclear what he means.
Unlock gold assets
While most of the developed world has been lately witnessing a steep fall in the demand for gold, leading to a fall in price of the precious metal, lower prices seems to be attracting more buyers in India. India is the largest consumer of gold jewellery in the world and the recent liberalisation of gold imports has only whetted the average Indian's appetite for the yellow metal.
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