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Showing posts from August 24, 2008

Sun gets favourable ruling in battle for Taro

Late in the day The Tel-Aviv District Court told Taro's directors that it was "disingenuous" to claim now, over a year after they approved the transaction, that a special tender offer was required.Our Bureau Mumbai, Aug. 27 Sun Pharma's $454-million proposal to acquire Israeli-drug company Taro Pharmaceutical received a shot in the arm, with the Tel-Aviv District Court rejecting Taro's contention that Sun should conduct a 'special tender offer' under the Israeli law. Consequently, Sun Pharma will be able to complete its previously announced tender offer by its subsidiary, Alkaloida Chemical Company Exclusive Group Ltd, a Sun Pharma communiqué said. However, the course is only partially clear, as Taro could appeal the ruling, following which the case could then shift to Israel's Supreme Court, a company official familiar with the development told Business Line. Taro had terminated Sun's acquisition proposal, a year after it had been form…

Jindal Photo clicks on plan to delist from BSE

Jindal Photo surged 11.69% to Rs 150 at 14:06 IST on BSE after its board decided to delist the shares from the Bombay Stock Exchange. The company made the announcement after market hours yesterday, 26 August 2008. The stock is listed on BSE as well as NSE. The BSE was down 43.52 points, or 0.30%, at 14437.28. On BSE, 1.90 lakh shares were traded in the counter. The scrip had an average daily volume of 10,485 shares in the past one quarter. The stock hit a high of Rs 161.25 and a low of Rs 145.05 so far during the day. The stock had a 52-week high of Rs 428.85 on 8 January 2008 and a 52-week low of Rs 115.15 on 18 July 2008. The scrip had outperformed the market over the past one month till 26 August 2008, rising 12.01% compared to the Sensex's 1.45% gain. It had, however, underperformed the market in the past one quarter, falling 20.30% compared to Sensex's 11.42% fall. The small-cap photographic equipment maker has an equity capital of Rs 10.26 crore. Face val…

MM Forgings moves north on setting record date for bonus issue

MM Forgings surged 4.07% to Rs 179.10 at 12:56 IST on BSE after the company said it has fixed 30 September 2008 as the record date for issue of bonus shares in the ratio of 1:1. The company announced the record date during trading hours today, 25 August 2008.  On BSE, 13,747 shares were traded in the counter. The scrip had an average daily volume of 2,089 shares in the past one quarter. The stock hit a high of Rs 188.50 and a low of Rs 179 so far during the day. The stock had hit a 52-week high of Rs 192 on 1 January 2008 and a 52-week low of Rs 98.90 on 25 March 2008. The small-cap company had outperformed the market over the past one month till 22 August 2008, gaining 16.48% compared to the Sensex's return of 2.11%. It had underperformed the market in the past one quarter, gaining 12.37% compared to Sensex's decline of 14.82%. The company has an equity capital of Rs 6.04 crore. Face value per share is Rs 10. The current price of Rs 179.10 discounts its Q1 June…

LIC, the big daddy of the Indian equity market, is on a shopping...

Not Everybody Is Selling While it's demoralising for investors to hear about the exodus of deep-pocketed FIIs, they can take heart from the fact that LIC, the big daddy of the Indian equity market, is on a shopping spree. Krishna Kant tells you why
THE WAY the Indian equity market has moved during the year so far, it seems a big sale is going on at the bourses. The biggest party poopers have been foreign institutional investors (FIIs).
    They have reportedly sold nearly Rs 50,000 crore worth of equity in the first seven months of the current calendar year, or an estimated 6% of their cumulative portfolio at the end of '07. This has created an impression that all large long-term investors have lost faith in Indian equities.
    Nothing can be further from the truth. While it's demoralising for retail investors to hear about the exodus of deep-pocketed FIIs, they can take heart from the fact that the big daddy of the Indian equity market — Life Insurance Corporation (LIC…

The cash advantage

Companies that hold a significant amount of cash or liquid investments can call the shots during tough timesWhen demand slows down, cost pressures increase and interest rates rise, companies having sizeable cash or liquid investments on their books are seen as safe havens. Not only are they protected from hardening interest rates (which could hamper profitability), they are also in a position to extend their credit cycles and adjust to short-term business hiccups.But, merely having surplus cash may not really make much sense and in fact, could prove detrimental for shareholders. Says Deepak Jasani, head of Retail Research, HDFC Securities, "Cash lying in the balance sheet for a long time without getting deployed or returned to the shareholders can destroy shareholder value. A two-three year period is sufficient for a company management to decide on how they want to put the cash to use."It is also imperative for companies to utilise these resources in a value accre…

Enam Securities assigns "underperformer" ratings to Hindalco

Hindalco Inds
cmp: Rs 134.55
target price: Rs 182

Enam Securities has assigned an "underperformer" ratings to Hindalco as it feels the company's proposed rights issue is diluting the growth of the company. Hindalco is planning a rights issuance of three shares for seven existing shares at Rs 96 per share. "This is in contrast to the earlier envisaged one share for every three shares around Rs 120 per share and is round 30% discount to FY08 book value per share. The issuance hints at a sense of urgency for fund raising, given tight capital market conditions, to retire $3-billion bridge debt that expires in November 2008," the Enam note to clients said. "We reduce our FY09 and FY10 earnings per share estimate to Rs 17.5 (Rs 19.9 earlier) and Rs 22.7 (Rs 24.4 earlier), respectively, to reflect more-than-anticipated rights dilution at lower price and attendant net interest impact," the note added.

Street's still afire: India Inc lines up $17-billion IPOs

NEW DELHI: There is always a lull before the storm. After a rather dull first eight months of 2008, the Indian capital markets are headed for a stormy session ahead. What's in store for the last four months is more than thrice the amount of proceeds raised during the first eight months.

In fact, Indian companies are lined up to raise an estimated $17 bn from 56 public issues during the last four months of 2008, according to Thomson Reuters estimates.

Merchant bankers in India don't rule out a possible IPO bubble burst, considering the huge amount of IPOs in the pipeline. "Till now, companies have deferred their issues due to valuation concerns. They have been waiting in the hope that market sentiments will rationalise sooner rather than later. Now, they are slowly but surely resigning to the fate and starting to move ahead with the fund raising process, as there are genuine capital requirements, which cannot be put on hold beyond a certain timeline," a se…