Investors dump IFCI as it calls off stake sale plan

-

IFCI slumped 22.79% to Rs 77.25 at 10:12 IST after the company, on Wednesday, 19 December 2007, called off the exercise to rope in a strategic partner through the private placement of 26% equity stake..

The BSE Sensex was up 69.79 points, or 0.37%, to 19161.23.

On BSE, 1.44 crore shares of the scrip were traded. The stock had an average daily volume of 1.54 crore shares on BSE in past one quarter.

The scrip had touched a high of Rs 86 and a low of Rs 73.25 so far during the day. The stock had hit a 52-week high of Rs 121.20 on 17 December 2007 and a 52-week low of Rs 10.75 on 20 December 2007.

The scrip had outperformed the market in the one month to 18 December 2007, adding 1.52% as against the Sensex's 0.98% decline. It had also outperformed the market in the past three months, soaring 25.06% against the Sensex's 16.79% rise.

The state-run non-banking finance company has an equity capital of Rs 639.99 crore. Face value per share is Rs 10.

At the current price of Rs 77.25, the scrip trades at a PE multiple of 2.48, based on Q2 September 2007 annualised EPS of Rs 31.14.

Sterlite Industries-Morgan Stanley combine was the front-runner for the stake as it offered the highest price of about Rs 110 per share among the three consortia that submitted the financial bids last week. The deal was, however, called off in the wake of conditional offer made in the financial bid by the Sterlite-Morgan Stanley consortium, which was not acceptable to the members of the board, the report suggested.

As per reports, the Sterlite-Morgan Stanley consortium was not looking for management control, but they were certainly looking for some more representation on the board. As per the bidding documents, a strategic investor with 26% stake (and 20% additional stake through open offer) was entitled to two seats on a board of eight.

The reports suggested that IFCI, which has a negative capital adequacy ratio at the moment and has poor credit rating, will now look to rope in multilateral agencies like International Finance Corporation to expand its equity base. Reportedly, the institution would also explore the possibility of seeking some government assistance as a short-term measure.

IFCI was seeking a strong partner, be it an Indian entity or from overseas, which can add value to the company. The 26% stake sale was part of IFCI's aim of being a world-class term-lending institution and not converting itself into a bank

IFCI's net profit rose 329.3% to Rs 497.29 crore on 82.9% growth in net sales to Rs 591.60 crore in Q2 September 2007 over Q2 September 2006.

IFCI's principal activities are project financing, providing financial services and comprehensive corporate advisory services. The company also provides equipment finance, equipment credit, equipment leasing, corporate loans, short-term loans and working capital loans to meet the specific needs of corporate.

Popular posts from this blog

IOB capitalises on hike in stake by LIC

-
Indian Overseas Bank rose 1.53% to Rs 46.45 at 10:31 IST on BSE, after the biggest domestic instutional investors Life Insurance Corporation of India hiked its stake in the state-run bank. The bank made this announcement after trading hours on Wednesday, 25 March 2009. Meanwhile, the BSE Sensex was up 126.19 points, or 1.31%, to 9,794.09. On BSE, 31,003 shares were traded in the counter. The stock had an average daily volume of 1.93 lakh shares in the past one quarter. The stock hit a high of Rs 47 and a low of Rs 45.95 so far during the day. The stock hit a 52-week high of Rs 156.80 on 2 May 2008 and a 52-week low of Rs 37.55 on 9 March 2009. The mid-cap bank stock had underperformed the market over the past one month till 25 March 2009, falling 3.17% as compared to the Sensex's 8.60% rise. It had also underperformed the market in the past one quarter, declining 33.94% as compared to the Sensex's 1.04% rise. The bank's current equ The current price of ...
Read more

Lok Housing & Constructions builds on fund raising plans

-
Lok Housing & Constructions jumped 6.99% to Rs 107.90 at 11:20 IST on BSE ahead of a board meeting to consider fund raising options from both foreign and local market, including an institutional placement. Meanwhile, the BSE Sensex was down 50.50 points, or 0.30%, at 15203.73. On BSE, 1.86 lakh shares were traded in the counter. The scrip had an average daily volume of 4.74 lakh shares in the past one quarter. The stock hit a high of Rs 115 and a low of Rs 102 so far during the day. The stock had a 52-week high of Rs 390.50 on 1 January 2008 and a 52-week low of Rs 96.25 on 12 June 2008. The scrip had underperformed the market over the past one month till 12 June 2008, falling 26.55% compared to the Sensex's 10.18% decline. It had also underperformed the market in the past one quarter, falling 31.39% compared to Sensex's 3.24% fall. The small-cap housing projects developer has an equity capital of Rs 42.88 crore. Face value per share is Rs 10. The current...
Read more

Griffin Chemicals surges on re-listing

-
Griffin Chemicals was trading at Rs 29, up 2220% on re-listing after six years on Bombay Stock Exchange (BSE). The counter saw miniscule volume of 4769 shares. The stock opened at Rs 23, up 1740% against its last traded price of Rs 1.25 on 8 August 2002. The Griffin Chemicals stock was highly volatile today. It opened at Rs 23 and then rallied ahead to Rs 50 but soon eased to a low Rs 22. The surge in Griffin shares reminds of unprecedented rise in stock prices of KGN Industries on its re-listing day. KGN Industries, run by Ahmedabad-based Memon family, had re-listed at Rs 100 per share after nearly seven years in May 2008 this year. The stock had risen to a high of Rs 55,000.
Read more