MC Pro Inside Edge: Precious power co, D-Street doctor doubles down on DB, Godfather in demand

This fly-on-the-wall column peeps into the inner goings-on of Dalal Street, what stocks veteran bulls are eyeing, what bears are ganging up against, secret deals and more

'Gem' of a strategy

Shares of this low-priced ‘gem’ of a power company are seeing a flurry of activity over the last four months and have more than doubled in value. Inside Edge hears some big boys from Mumbai circles, who usually hunt in packs, have been whipping up a froth in the stock. The frenzy has caught the attention of the stock exchanges, landing it in the additional surveillance mechanism (ASM) list. Remains to be seen if this will chastise the charged-up bulls. Second quarter numbers were robust, but the latest bout of buying is not just about an improvement in financial numbers. Chatter is that some of the big boys will be taking stakes through a preferential allotment in the not-so-distant future.

Autumn is here

The weather is getting cooler, but matters appear to be hotting up in the shares of DB Realty. A leading Mumbai-based investor who shares his name with Munnabhai MBBS is doubling down on this stock. Chatter is that the promoter is committed to trimming debt in a disciplined manner, besides the standard stories about major projects. Remember, the late Big Bull did not have much luck with it during his lifetime despite holding on the stock for nearly a decade. But this Dalal Street doctor seems to be confident that the management will deliver this time. More block deals are in the offing, so we hear.

Work from Home

Promoters of many midcap and small cap companies have been heard to be making a beeline to Dubai of late. No, it is not for the famed Desert Safari or shopping binges. Buzz is that these businessmen are seeking the blessings of a little known but highly influential entrepreneur-cum-market player who has quietly gone on to command something of a Godfather-like status in the Dalal Street circuit. The Godfather is said to have worked his magic on quite a few stocks in India, without leaving the Gulf shores. We hear that the Indian promoters who went to call on him found the experience akin to a visit to the doctor’s clinic: there was a queue of hopefuls looking for a booster shot for their stocks. Watch this space for more updates on this Dubai-based player.

Punt mat karo

The lure of SME public offerings seems too much to resist even for so-called quality-conscious players who have so far been taking the high moral ground. Take this financial services firm for instance, whose name stands for I-know-it-all. When this diarist’s colleague met up with the firm’s top honcho a couple of months back, the person turned his nose up at SME IPOs and said they were to be avoided since most of them were manipulated by operators. So imagine our surprise when we found out recently that I-know-it-all had already been the lead manager for one SME issue and also happens to be the lead manager to one of the upcoming SME issues. Seems the ‘math’ is too lucrative to give it a pass.