Hero Honda Steers Funds Into IPO Mkt

New Delhi, April 27 | Updated: Apr 28 2004, 05:30am hrs
Hero Honda Motors, which has traditionally been investing its surplus cash in mutual funds, has turned its attention to the initial public offering (IPO) market. It pumped in Rs 250 crore in the six IPOs recently including Gail, ONGC, Biocon, Petronet, IPCL and Power Trading Corporation, and got allotments worth nearly Rs 80 crore.

We have invested in these companies as they are fundamentally very strong. As a general rule, we have been putting money mostly in mutual funds, a top company official told FE.

The company had made an application of Rs 50 crore in ONGC, but was allotted Rs 31 crore of shares. In the case of IPCL, the company got full allotment against the shares it had applied for.