The Hindu : Business : Tata MF's Equity P/E fund

Online edition of India's National Newspaper
Tuesday, May 25, 2004

Business

Business

Tata MF's Equity P/E fund

MUMBAI, MAY 24. Tata Mutual Fund has launched an equity investment scheme — Equity P/E Fund — which aims to invest the corpus predominantly in undervalued companies whose P/E ratios are less than that of BSE-30 index, and expects to mobilise about Rs. 400 crores.

The initial public offering for P/E (ratio of market price of share to earnings per share) scheme opened on May 17 and would close on June 15, Tata MF Managing Director, Ved Prakash Chaturvedi, told reporters here today. The would be available under two options — Dividend Option with a minimum investment of Rs. 5,000 and in multiples of Re. 1, and Growth Option with a minimum investment of Rs. 5,000 and in multiples of Re 1. There is no maximum limit for investment.

The scheme would invest at least 70 per cent of net assets in shares whose trailing P/E ratios are less than that of BSE Sensex at the time of investment, he said.

Asked about mobilisation target for the IPO, he said the mutual fund had set a target of Rs. 400 crores and the initial response was encouraging.

The mutual fund would adopt a stringent valuation criterion and parameters such as management, business competitiveness and growth prospects to ensure maximum returns, he said. The current assets under the management of Tata MF stood at Rs. 5,065 crores as on April 30, 2004.

PTI

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