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Showing posts from June 8, 2008

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 pr…

Essar Steel may bag Esmark for $750 million

MORGANTOWN: Steel producer and distributor Esmark Inc rejected a $670 million takeover offer from Russia's OAO Severstal on Thursday, calling the bid inadequate and inferior.

Esmark's announcement came 24 hours after India's Essar Steel Holdings Ltd. sweetened its offer for the West Virginia company by $80 million, raising its bid to $19 per share, or $750 million.

While Esmark's management had endorsed Essar's initial $670 million offer in late April, the United Steelworkers union partnered with Severstal on a counteroffer.

Neither Esmark shares, meanwhile, rose 30 cents, or 1.5 percent, to $20.28 on the Nasdaq.

A statement from Esmark's board of directors said it was not convinced Severstal could close the deal. The board also decided Severstal's offer was not in the best interests of shareholders and urged them not to sell their shares to the metals and mining company.

"We continue to invite bidders, including Severstal, to provide …

Deccan Chronicle Holdings in demand

Deccan Chronicle Holdings jumped 10% to Rs 120 at 12:48 IST on BSE on market buzz the firm is planning share placement at about Rs 140 each. On Wednesday, 11 June 2008, the stock had risen 7.62% at Rs 108.80. Meanwhile, the BSE Sensex was down 264.85 points, or 1.74%, at 14920.30, hit by the Reserve Bank of India's decision to raise short term interest rates and on weak global cues. On BSE, 7.31 lakh shares were traded in the counter. The scrip had an average daily volume of 68,994 shares in the past one quarter. The stock hit a high of Rs 123.45 and a low of Rs 108 so far during the day. The stock had a 52-week high of Rs 270.10 on 4 January 2008 and a 52-week low of Rs 99.05 on 10 June 2008. The scrip had underperformed the market over the past one month till 11 June 2008, falling 25.78% compared to the Sensex's 9.36% decline. It had also underperformed the market in the past one quarter, falling 28.02% compared to Sensex's 1.12% fall. The mid-cap newspa…

Zenotech Lab in demand as Daiichi Sankyo-Ranbaxy deal triggers open offer

Zenotech Laboratories was locked at upper limit of 20% at Rs 112.95 at 12:43 IST on BSE after Japan's Daiichi Sankyo said it would make an open offer for 20% in the company, following its decision to buy controlling stake in Ranbaxy Laboratories. Meanwhile, the BSE Sensex was up 245.97 points, or 1.65%, at 15135.99, on positive cues from Asian markets and on further fall in crude oil prices. On BSE, 2.45 lakh shares were traded in the counter. The scrip had an average daily volume of 23,298 shares in the past one quarter. The stock hit a low of Rs 96 so far during the day. The stock had a 52-week high of Rs 182.90 on 4 October 2007 and a 52-week low of Rs 72.40 on 24 March 2008. The scrip had underperformed the market over the past one month till 10 June 2008, falling 9.73% compared to the Sensex's 11.69% decline. It had, however, underperformed the market in the past one quarter, falling 6.08% compared to Sensex's 7.68% fall. The small-cap drug maker has an…

Grey market writing successful scrips for small-sized IPOs

MUMBAI: Small-sized public issues are increasingly becoming the punter's favourite playing ground.

Given the small size of the issues, operators get into the act by cornering a significant chunk of shares, pumping up the price and volumes at the counter, and then dumping them on unsuspecting investors. Market watchers say that, often, the operators are in cahoots with the merchant bankers to the issue and, in some cases, with the promoters of the companies as well. The operation is usually completed in less than a month after the listing of shares.

According to market participants, trying market conditions make it difficult for most small-sized companies to raise money from genuine investors. Sensing the opportunity, promoters are approached by market operators and the entire issue management is said to be handed over to the dubious players after agreeing to terms and conditions.

Many operators are Ahmedabad-based and have the resources and network to subscribe to …

Premium for Ranbaxy buy among the highest

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Most other Indian buyouts at 10-20% premium
Shanthi Venkataraman AdvertisementBL Research Bureau The 30 per cent premium over the ruling market price that Daiichi Sankyo is paying to buy out the promoters of Ranbaxy Laboratories, may be among the highest paid for such a takeover of an Indian company over the past two years. Acquirers have usually paid a premium of 10-20 per cent over the prevailing market price of the target companies, in recent acquisitions where promoters have shed a majority of their stake. How much more There are not too many instances of Indian promoters parting with their control over a key listed company. Recent instances of Indian promoters cashing out on a big chunk of their holdings include the complete exit of the Burmans from Dabur Pharma and Aztec Software's promoters selling out their stake to Mindtree Consulting. The buyers paid a 20 per cent premium over market price in Dabur Pharma's case. But the premium was insignificant in the ca…

GHCL spurts on stake sale buzz

GHCL was locked at upper limit of 20% at Rs 53.75 at 10:36 IST on BSE on reports Middle East based Al Rostamani Group is in negotiations to pick up 25% stake in the company. Meanwhile, the BSE Sensex was up 267.63 points, or 1.82%, at 15160.16, on positive cues from Asian markets and on further fall in crude oil prices. On BSE, 9.92 lakh shares were traded in the counter. The scrip had an average daily volume of 5.01 lakh shares in the past one quarter. The stock had a 52-week high of Rs 208.40 on 24 December 2007 and a 52-week low of Rs 44.30 on 10 June 2008. The scrip had underperformed the market over the past one month till 10 June 2008, falling 47.63% compared to the Sensex's 11.69% decline. It had also underperformed the market in the past one quarter, falling 53.09% compared to Sensex's 7.68% fall. The small-cap chemicals maker has an equity capital of Rs 100.02 crore. Face value per share is Rs 10. The current price of Rs 53.75 discounts its Q4 March 200…

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.

Why the Indian markets are falling

June 9, 2008It all started with the US subprime problem and the global credit crunch, which led the BSE Sensex nosediving from its peak of 21,206 on January 10, 2008 to 14,677 on March 18. A part of the fall can also be attributed to the concerns pertaining to the increase in crude oil prices and its impact on India's economic growth.Some of the early signs were also visible from rising inflation and the slowdown in domestic industrial production numbers. This further led to concerns over high interest rates, slowdown in GDP and thus, corporate earnings as well.Sensing these developments, foreign institutional investors were the first ones to move out of the market, and they partly became the reason for the markets to fall.End of the bloodbath?If the global and domestic problems persist, experts predict the Sensex to fall to 12,000-14,500 levels. Though bold and unbelievable, there are few players who are predicting that the Sensex may touch the 9,000 levels.While …

Worst-hit stocks from last 7 trading sessions

The Indian equity markets have seen a heavy sell off during these last seven days. The Sensex and the Nifty have lost over 8% and are hovering around their psychological 15000 and 4500 levels respectively. On the sectoral front in BSE, realty was the worst hit. It tumbled by nearly 22% in the last seven days. For the same period, Capital Goods plunged 13%, Power slipped 12%, and Metal and Banking indices slid nearly 10%. The BSE Oil & Gas index was down 7%. Crude, trading at its peak is one of the reasons for the sectors underperformance. The BSE Auto and IT were also down by 5%, FMCG index also lost nearly 5%.The Pharmaceutical index was modestly impacted in this market mayhem; it was down nearly 2%.In this markets free fall, stocks like Neyveli Lignite, Bombay Dyeing, UB Holdings, Lanco Infratech, Deccan Chronicle, BPCL, ABG Shipyard, Reliance Power, HPCL, HDIL, Ansal Properties and Unitech have all lost over 20% in last seven trading session (May 30, 2008 to June…