Adhunik Metaliks Ltd will spend Rs 422 crore over 17 months to
increase production of key inputs for steel making and grow profits, a
senior official said on Thursday. The firm is aiming at net profit of
Rs 96 crore in 2007/08, and Rs 176 crore in 2008/09, director Manoj
Kumar Agarwal said.
It will set up a 17 megawatt power plant and expand capacities of
sponge iron and ferro alloy at its plant in Orissa, he said. The firm
will also set up railway connectivity to transport key inputs to the
plant site. Adhunik has tied up with banks and financial institutions
for raising Rs 274 crore as term loan for the project.
Thursday, March 6, 2008
Adhunik Metaliks Ltd will spend Rs 422 crore
Adhunik Metaliks Ltd will spend Rs 422 crore over 17 months to
increase production of key inputs for steel making and grow profits, a
senior official said on Thursday. The firm is aiming at net profit of
Rs 96 crore in 2007/08, and Rs 176 crore in 2008/09, director Manoj
Kumar Agarwal said.
It will set up a 17 megawatt power plant and expand capacities of
sponge iron and ferro alloy at its plant in Orissa, he said. The firm
will also set up railway connectivity to transport key inputs to the
plant site. Adhunik has tied up with banks and financial institutions
for raising Rs 274 crore as term loan for the project.
increase production of key inputs for steel making and grow profits, a
senior official said on Thursday. The firm is aiming at net profit of
Rs 96 crore in 2007/08, and Rs 176 crore in 2008/09, director Manoj
Kumar Agarwal said.
It will set up a 17 megawatt power plant and expand capacities of
sponge iron and ferro alloy at its plant in Orissa, he said. The firm
will also set up railway connectivity to transport key inputs to the
plant site. Adhunik has tied up with banks and financial institutions
for raising Rs 274 crore as term loan for the project.
Wednesday, March 5, 2008
Madras Cements buys back shares worth Rs 32 cr
Madras Cements on Wednesday said it has bought back shares worth about
Rs 32 crore, representing 49.72 per cent of the total buyback offer of
Rs 64.47 crore.
The company has commenced the offer last week and has bought back
85,225 equity shares amounting to Rs 32 crore, Madras Cements said in
a communique to the Bombay Stock Exchange.
Last month, the company had said it would buy-back shares worth over
Rs 64.47 crore, representing 10 per cent of the paid-up capital and
free reserves of the company as of March 31, 2007.
For the buyback, the company would pay not more than Rs 4,200 per
share, Madras Cements had said.
Rs 32 crore, representing 49.72 per cent of the total buyback offer of
Rs 64.47 crore.
The company has commenced the offer last week and has bought back
85,225 equity shares amounting to Rs 32 crore, Madras Cements said in
a communique to the Bombay Stock Exchange.
Last month, the company had said it would buy-back shares worth over
Rs 64.47 crore, representing 10 per cent of the paid-up capital and
free reserves of the company as of March 31, 2007.
For the buyback, the company would pay not more than Rs 4,200 per
share, Madras Cements had said.
:::::DLF plans to invest up to Rs 4,100 cr::::::
Leading real estate firm DLF on Wednesday said it plans to make
investments up to Rs 4,100 crore, including Rs 200 crore for setting
up an asset management company.
The firm would be investing Rs 1,550 crore in DLF Limitless Developers
Pvt Ltd, it said in a filing to the BSE.
Further, an investment of Rs 200 crore each would be made in the
proposed asset management firm and a trustee company.
Subject to approval from the concerned Registrar of Companies, the
asset management and trustee firms would be called DLF Pramerica Asset
Managers Pvt Ltd and DLF Pramerica Trustees Pvt Ltd respectively.
investments up to Rs 4,100 crore, including Rs 200 crore for setting
up an asset management company.
The firm would be investing Rs 1,550 crore in DLF Limitless Developers
Pvt Ltd, it said in a filing to the BSE.
Further, an investment of Rs 200 crore each would be made in the
proposed asset management firm and a trustee company.
Subject to approval from the concerned Registrar of Companies, the
asset management and trustee firms would be called DLF Pramerica Asset
Managers Pvt Ltd and DLF Pramerica Trustees Pvt Ltd respectively.
Godrej Consumer Products today fixed the rights issue price.
FMCG major Godrej Consumer Products today fixed the rights issue price
at Rs 123 per share to raise Rs 400 crore.
The board of directors approved a rights issue in the ratio of 1:7 i.e
one equity share of Re 1 each for every seven shares held.
According to a release issued by the company to the BSE today, March
19 has been fixed as the record date for the purpose of the rights
issue.
at Rs 123 per share to raise Rs 400 crore.
The board of directors approved a rights issue in the ratio of 1:7 i.e
one equity share of Re 1 each for every seven shares held.
According to a release issued by the company to the BSE today, March
19 has been fixed as the record date for the purpose of the rights
issue.
Sebi bid to curb stock tips from insiders
| Watchdog's insider trading norm amendment draft says anyone getting such tips will be penalised. | |
| If the Securities and Exchange Board of India’s (Sebi’s) draft guidelines are cleared in its current form, people who receive stock tips from company insiders could be penalised. However, market participants say, it will be tough to implement such regulations.
| |
| “It is very difficult to nab insider traders. Everyone knows informally that all tips originate from the management. But it remains to be seen how these regulations, once final, will be enforced,” said S P Tulsian, investment advisor. | |
| It is an open secret that investment bankers themselves “leak out” in the grey market the premium at which shares will be traded when companies are raising money through initial public offers. | |
| This they do so that demand for the company’s shares goes up. “At the very least, the management is not unaware of whatever rigging happens in a company’s stock,” said a broker. | |
| Sebi’s draft regulations also propose to bring the derivatives segment within its purview. Derivative trading was not available in India when the insider trading rules were drafted in 1992. | |
NMDC to consider issue of bonus shares
In extra ordinary general meeting (EGM) of the members of NMDC will be held on Apr. 03, 2008, for considering splitting of equity shares; issue of bonus shares and amendment to memorandum and articles of association.
This is in line with the decision of the Government of India and the board of directors of the company.
National Mineral Development Corporation (NMDC) was promoted by the government of India in 1958. It is involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc. NMDC is India`s single largest iron ore producer and exporter.
Shares of the company declined Rs 337.65 , or 3.24% to trade at Rs 10070. The total volume of shares traded was 3,774 at the BSE.(2.40 pm ,Wednesday).
Nestle’s growth draws investors
Domestic sales grew by 22% in the December quarter, the fourth consecutive quarter where growth has been higher than 20%
Shares of Nestle India Ltd have risen 9% in the past two trading sessions, riding piggyback on impressive results and the market’s sudden interest for defensive stocks from the FMCG (fast-moving consumer goods) and pharmaceuticals space. Nestle has bounced back well after a lacklustre performance in 2006, when profit before interest and tax had risen just 3%. Last year, profit jumped by over 30%, partly because of the low base in 2006, but largely owing to impressive volume growth and price increases.
Shares of Nestle India Ltd have risen 9% in the past two trading sessions, riding piggyback on impressive results and the market’s sudden interest for defensive stocks from the FMCG (fast-moving consumer goods) and pharmaceuticals space. Nestle has bounced back well after a lacklustre performance in 2006, when profit before interest and tax had risen just 3%. Last year, profit jumped by over 30%, partly because of the low base in 2006, but largely owing to impressive volume growth and price increases.
Reliance Energy to repurchase Rs2,000 cr shares in two phases
Mumbai: The board of Reliance Energy Ltd has approved a buyback of shares worth up to Rs2,000 crore from the open market at a peak price of Rs1,600 a share, in an effort to increase the firm’s valuation. The buyback will be carried out in two phases. 
Regaining ground: The buy-back is seen as yet another move by Anil Ambani to restore investor confidence in his group companies.
Reliance Energy will use the cash and cash equivalents on its books to finance the repurchase, and expects this to “reduce short-term volatility and deter speculative activity.”
The company, part of Reliance-Anil Dhirubhai Ambani Group (R-Adag), will buy back shares worth about Rs800 crore in the first phase, which is effective immediately.
In the second phase, it will buy back shares worth up to Rs1,200 crore, subject to shareholder approval.
The firm said the buyback would “send a strong signal to the capital markets on the perceived under-valuation of the company’s shares price; and reiterate the confidence of management in future growth prospects of the company.”
Reliance Energy was the biggest gainer among Sensex stocks in 2007, but has fallen more than 30% in 2008, compared with a drop of 18.5% in the Sensex, the benchmark index of the Bombay Stock Exchange (BSE). Its shares had risen 307.87% in 2007, outperforming the Sensex, which rose about 45%.
The maximum repurchase price of Rs1,600 is 9.6% more than the stock’s closing price of Rs1,459.45 on Wednesday.
“It is definitely a good price and may act as a support on Reliance Energy’s stock price at current levels,” Nitin A. Khandkar, head of research at Keynote Capitals Ltd said.
Reliance Energy plans buyback at Rs 1,600/share
MUMBAI: Anil Ambani’s Reliance Energy (REL) said on Wednesday that it would buy back shares worth up to Rs 2,000 crore at a price of up to Rs 1,600 a share, a 9.6% premium over Wednesday’s closing price. With the fund allocated for buyback, the company could purchase around 1.25 crore shares from the open market, which would raise promoter’s stake by 1.5% to 37% on a reduced equity base, said a senior company executive. The REL board, which met on Wednesday, has decided to complete the buyback in two phases. The company will release Rs 800 crore in the first tranche, while the remaining Rs 1,200 crore will be allotted in the second phase, subject to shareholders’ approval. The buyback is to “reduce short-term volatility in the company’s share price and deter speculative activity” in the stock, the company said in a statement. The promoters’ equity in the power distribution company stands at 35.5% after they scaled up their holding by 2.5% in past one year through creeping acquisitions. The REL stock quadrupled in 2007, making it one of the top performers in the stock market. The share has fallen over 30% so far this year, more than the BSE index’s 18.5% drop. Ahead of the buyback announcement, the REL share closed 3% lower at Rs 1,459.45 on the BSE on Wednesday. “REL, which has a cash reserve of almost Rs 11,000 crore and a net worth of Rs 10,000 crore, is undervalued in the market. The buyback will reduce the equity base, resulting in an increase in the earnings per share (EPS) since the shares bought back will be extinguished. This, in turn, will increase the promoters’ stake on a reduced equity base. Also, it is expected to set a floor price and restrict the downside,” said an analyst with a local brokerage. REL’s fully diluted equity capital is Rs 279.53 crore, while its market capitalisation is over Rs 42,000 crore. The move, which aims to bolster investor confidence, came soon after REL arm Reliance Power announced three bonus shares for every five shares held by its investors. Reliance Power slumped 17% on its debut in February after raising Rs 12,000 crore through the country’s largest IPO. Post-announcement of the bonus issue, the Reliance Power stock crossed the issue price of Rs 450. But it came down by 4.1% on Wednesday to close at Rs 376.25. The bonus shares will bring down the cost of acquiring Reliance Power shares to Rs 269 for retail investors and Rs 281 to others. The Reliance Power shares were sold at Rs 450 through the IPO, which offered Rs 20 discount to retail investors. This is the second time REL is going for a buyback after the Reliance group had acquired the erstwhile BSES. Earlier, in June 2004, before the demerger of the Reliance group, it had bought back shares worth Rs 350 crore. It had paid a maximum price of Rs 525 per share, which represented a 12% premium to the low of Rs 463 on May 31, 2004, the day on which the notice to consider buyback of shares was issued to the stock exchanges. |
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