CRISIL gets re-rating after unveiling dot.com plans
Yesterday (8th December 1999) the Credit Rating Information Services of India Ltd. (CRISIL) counter witnessed an appreciation of Rs 70 to touch Rs 490 after it announced its Internet initiative.
Even fund managers have turned bullish about the stock. As reported by a leading financial newspaper, a fund manager at Sun F&C Mutual Fund remarked - 'ThIs is one of the few companies which has launched itself on the Internet and also has revenues.'
Former SBI Mutual Fund chief investment officer Ved Prakash Chaturvedi said the price movement reflected its position as a strong information and rating company which was vigorously adopting the net in a futuristic strategy. Fund managers are now re-rating the stock in view of CRISIL's ambitious plans.
CRISIL wants to be a one-stop site on information for investment purposes counterparty credit risk checks, etc. It is targeting retail investors via a low priced offer.
Another rating agency - ICRA, is also launching an Internet website on similar lines, except for the fact that it will focus on institutional investors as opposed to retail investors.
Both these ventures are unique. However, web sites across the world have had not done well by charging a fee for their services. Even Indian web sites (like ICICI Banking, www.indiainfoline.com) failed miserably in their Internet initiative as they used charged a fee for their services. Dismal hit rates made these sites rework their strategies to enhance interest.
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