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Showing posts from August 10, 2008

Sebi`s QIP norm may end price manipulation

The rampant manipulation in share prices of companies going in for a qualified institutional placement (QIP) could now be curtailed, following the Securities and Exchange Board of India's (Se On August 13, the capital market regulator said QIPs should be priced based on the average price of shares two weeks prior to the issue instead of taking the average price of six months or 15 days, whichever is higher.TIGHT ANALYSIS

Typically, the promoters of a company diluted a nominal stake of 10-15 per cent during an initial public offer (IPO) Post-issue, it became easy for operators to rig the share price as a result of lower liquidity. This later ensured that companies could execute private placements at better valuations Market experts said earlier several companies planning a QIP issue were actively involved in rigging share prices before offloading their stake, enabling them to earn higher returns."For Sebi, it had become pract…

Reliance Infratel scraps Rs 6,000 cr IPO

Press Trust Of India / New Delhi August 15, 2008, 14:44 ISTThe stock market woes for India's second richest person Anil Ambani, it seems, are unending with Reliance Infratel scrapping its estimated Rs 6,000-crore IPO plans for now - amid huge secondary market loss for the group companies.Reliance Infratel, the tower business arm of the group's telecom entity Reliance Communications, has allowed the regulatory approval to lapse without coming out with an IPO and is unlikely to revive the process soon.A company spokesperson did not take queries on lapse of the approval period and on whether the company was looking to revive the process by filing a fresh draft IPO prospectus with market regulator SEBI.On the secondary market, Reliance Infrastructure, formerly Reliance Energy, has logged the biggest loss among the top 30 blue-chip companies in the country in the seven- month downslide at the bourses and the group as whole has lost market value worth over Rs 2,00,0…

Private provident funds allowed to invest up to 15% in stocks

The new investment pattern would come into force from April 1, 2009 Our Bureau New Delhi, Aug. 14 Private sector managed provident fund and superannuation trusts can now have greater exposure in the stock markets.They can soon directly invest up to 15 per cent of their investible funds in shares of companies on which derivatives are available in the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE).This has been provided in the new investment pattern for non-government provident, superannuation and gratuity funds issued by the Finance Ministry here today. The new investment pattern, which would come into force from April 1, 2009, has been issued after factoring in the developments in the financial market and economy. They have been revised to make it more flexible and give the trustees of these funds more autonomy and discretion. The investment pattern was last revised on January 24, 2005.At the draft stage of these new guidelines, the Government was looking to al…

Cabinet accepts Sixth Pay Commission report

Govt announces 21% pay hike; arrears from 2006Press Trust Of India / New Delhi August 14, 2008, 17:45 ISTThe UPA Government today announced an average increase of 21 per cent in salaries of over 50 lakh government employees with effect from January 1, 2006, adopting the Sixth Pay Commission recommeThe wage hike would increase the financial implication for the Centre by Rs 17,798 crore annually and the arrears with effect from January 2006 would cost Rs 29,373 crore, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.    The government increased the minimum entry level salary of a government employee to Rs 7,000 against Rs 6,660 recommended by the Commission headed by Justice B N Srikrishna who submitted the report in March this year.    Consequently, it would push up the total emoluments of an employee at the lowest level beyond Rs 10,000 per month including allowances.    It also increased the rate of annual increment f…

Bhel lines up $2.5 bn investment in next 4 years

Power equipment major Bhel today announced an investment of $2.5 billion (over Rs 10,000 crore) in the next four years to ramp up capacity to meeting the growing electricitWe will be investing Rs 5,000 crore in the first phase till December 2009 to reach 15,000 Mw capacity. Besides, the Board has also approved an investment of similar amount to take the capacity to 20,000 Mw by 2012," Bhel CMD K Ravi Kumar told PTI.     The investment is in line with the order book of the company, which has crossed the 1,00,000 mark and is still growing.     On the issue of delay on part of Bhel to supply the equipments, Ravi said, Bhel was not responsible for it as most of the projects which have been facing time overrun are due to changes in the parameters.     
"Any change in the parameters requires a complete redesigning of the project and that causes delay sometimes," he said.     On the overseas expansion, the company is looking for acquisitions and is likely to appoin…

Subex soars on buzz of possible takeover attempt

Subex jumped 9.96% to Rs 109.25 at 15:33 IST on BSE extending a rally from past two sessions on market buzz that a large firm is buying shares of the company from the open market, aiming at a complete takeover. On BSE, a huge volume of 56.31 lakh shares was recorded in the stock today. The scrip had an average daily volume of 60,417 shares in the past one quarter. The stock hit a high of Rs 113.35 and a low of Rs 101 so far during the day. The stock had hit a 52-week high of Rs 610 on 6 September 2007 and a 52-week low of Rs 73.10 on 17 July 2008. The stock rose a whopping 33.98% to Rs 99.35 on 13 August 2008 from Rs 74.15 on 11 August 2008. The small-cap company had outperformed the market over the past one month till 13 August 2008, gaining 14.59% compared to the Sensex's return of 12.05%. It had however underperformed the market in the past one quarter, falling 31.46% compared to Sensex's decline of 9.91%. The company has an equity capital of Rs 34.85 crore. …

MIC Electronics surges on overseas deal

MIC Electronics surged 3.20% to Rs 132.20 at 14:35 IST on BSE after the company said it has formed a joint venture with Latin American Football Corporation for supply of display systems to 50 football stadiums in South America and Europe. The company made this announcement during trading hours today, 13 August 2008. Meanwhile, the BSE Sensex was down 84.63 points, or 0.56%, to 15,127.50 on weak global cues. US stocks fell on Tuesday, 12 August 2008, as bank shares tumbled on fresh worries about the economy and further losses stemming from the mortgage crisis. On BSE, 6.88 lakh shares were traded in the counter. The scrip had an average daily volume of 74,839 shares in the past one quarter. The stock hit a high of Rs 140.90 and a low of Rs 129.90 so far during the day. The stock had hit a 52-week high of Rs 217.56 on 27 December 2007 and a 52-week low of Rs 72.60 on 14 August 2007. The mid-cap company had outperformed the market over the past one month till 12 August 20…

Introduction of futures and options contracts on 39 additional individual securities

NATIONAL STOCK EXCHANGE OF INDIA LIMITEDFUTURES & OPTIONS SEGMENTCIRCULARCircular No. NSE/F&O/081/2008August 12, 2008Download No: NSE/FAOP/11119Dear MembersIntroduction of futures and options contracts on 39 additional individual securitiesWith reference to circulars no NSE/F&O/0014/2001 dated June 29, 2001, NSE/F&O/0027/2001 dated November 07, 2001, SEBI circular SMDRP/DNPD/CIR -26/2004/07/16 dated July 16, 2004, and approval received from SEBI, members are hereby notified that the following 39 additional securities will be available for trading in F&O with effect from August 21, 2008: Sr NoSymbolSecurity Name1ABGSHIPABG SHIPYARD LTD2AKRUTIAKRUTI CITY LIMITED3

Biocon inches ahead after setting record date for bonus

Biocon rose 0.48% to Rs 385.05 at 12:56 IST on BSE after the company said its board has fixed 12 September 2008 as the record date for issue of bonus shares in the ratio of 1:1.
The company announced the record date for bonus issue during trading hours today, 12 August 2008. .. On BSE, 14,361 lakh shares were traded in the counter. The scrip had an average daily volume of 48,473 shares in the past one quarter. The stock hit a high of Rs 387.85 and a low of Rs 379.05 so far during the day. The stock had hit a 52-week high of Rs 663.30 on 15 November 2007 and a 52-week low of Rs 336 on 18 July 2008. The mid-cap company had underperformed the market over the past one month till 11 August 2008, declining 3.46% compared to the Sensex's return of 15.10%. It had also underperformed the market in the past one quarter, declining 18.46% compared to Sensex's decline of 7.37%. The company has an equity capital of Rs 50 crore. Face value per share is Rs 5. The current price of Rs 385.05 di…

HEG surges on buyback plan

HEG surged 12.38% to Rs 267.70 at 14:22 IST on BSE after company said its board will meet on 19 August 2008 to consider share buyback proposal. The company announced this during market hours today, 11 August 2008. Meanwhile, the BSE Sensex was up 300.49 points, or 1.98%, to 15,468.31 on strong cues from global equities. A slide in oil prices to their lowest level in three months powered a rally in US stocks on Friday, 8 August 2008. On BSE, 2.08 lakh shares were traded in the counter. The scrip had an average daily volume of 29,626 shares in the past one quarter. The stock hit a high of Rs 276.70 and a low of Rs 239 so far during the day. The stock had hit a 52-week high of Rs 609 on 1 January 2008 and a 52-week low of Rs 174 on 2 July 2008. The small-cap scrip had outperformed the market over the past one month till 8 August 2008, gaining 20.82% compared to the Sensex's return of 13.62%. It had however underperformed the market in the past one quarter, declining 18.…