BSE Limited, the 142 year old exchange which is Asia’s oldest exchange completed allocation to anchor investors. The company allotted 46,28,158 shares to 25 anchor investors comprising of 38 entities at Rs 806. The highest allocation of 8,68,500 shares or 18.775 was made to Smallcap World Fund.

The company is tapping the capital markets with its offer for sale of 1,54,27,197 shares in a price band of Rs 805-806. The issue size is Rs 1,243 crs. The company BSE Limited runs the Bombay Stock Exchange which is the oldest stock exchange in India. It is the world’s largest stock exchange in terms of listed number of companies. It is India’s largest and the world’s 10th largest in terms of market capitalisation of listed companies. The market capitalisation as of October 2016 was 1.7 trillion US Dollars.

The company had reported revenues of Rs 426.54 crs for the year ended March 2016 and Rs 242.18 crs for the half year ended September 2016. Its net profit after tax and exceptional items was Rs 159.15 crs for the full year and Rs 124.75 crs for the half year. The EPS was Rs 22.45 and Rs 19.22 respectively. The EPS for the half year is not annualised.

The full list of anchor investors with their allotment is given below: –

The markets managed gains but there is no direction. The BSESENSEX clocked gains of 1.79% and NIFTY 1.90% in a choppy week. The two mega results from TCS and Infosys gave an impression that the environment is challenging and times tough. They fared reasonably under the circumstances but we need to be circumspect about the times and expected performances.Infosys and TCS both lost ground on Friday post results while TCS lost 1.38% for the week, Infosys gained 0.38% on a weekly basis.

Dow Jones is struggling at the 20k level and it is over a month that the same has attempted unsuccessfully to cross Mount Everest. The mark seems elusive and much more difficult than 150 points should be. The US President would be sworn in next week.

The week ahead sees the follow on fund offer from CPSE-ETF launched. The size of offer is Rs 6,000 crs and would have an anchor portion of 30%. The entire balance of Rs 4,200 crs has a first choice for retail investors. In case of it not being subscribed it would spill over to pension funds and then to HNI’s and QIB’s. There is a 5% discount for all applicants who are allotted units. The present units from the fist fund offering closed for trading at Rs 26.85 on Friday the 13th of January. I believe the fund offering is good and the skewed nature of its holding in favour of energy and oil would benefit investors with oil prices having bottomed out and firming up. Secondly the element of subsidy no longer exists unlike 2014 when there was a large and uncertain subsidy component which had to be borne by these companies.

A note of caution this being a mutual fund the application would be by cheque not through ASBA. Secondly there are procedures to be followed like KYC etc which have to be completed before the form is submitted. Please do the needful right away so that you do not get disappointed when the issue is closing on Friday.

Tata Sons have appointed N. Chandrasekaran as the new Chairman of Tata Sons on expected lines. He was tipped to succeed ousted Chairman Cyrus Mistry after the spat. The present head of TCS has been a Tata professional for over 30 years and has a long career ahead of him as he is currently aged 53. A low key professional with an excellent track record is what Chandra brings with him. He would take over as Chairman on 21st February.

The election commission has reserved its order on the claims of Mulayam Singh Yadav and his son Akhilesh Yadav in the Samajwadi party dispute on the election symbol. The likely outcome is the freezing of the symbol for the current election. This would be bad news for both the factions as India still votes for a symbol and this could lead to a loss of votes for both factions.

Markets need more clarity as to the trend. Wait for the same.