Business: GrapeLine
Sterlite Industries is very much in news. Company circles inform that bonus issue is on cards. It is tipped that issue is to be in the ratio of 1:1.
Aptech is increasing by leaps and bounds. Market men say, the bonus issue in the ratio of 1:1 is on cards.
DSQ Software, an IT company of Dalmias is being taken over by petrochemical major Reliance Industries. Some days back, Reliance made an official announcement of its venturing in to the IT sector.
Chicago Pneumatic (India) is expected to come out with excellent result in the second quarter of FY2000 on the back of revival in the domestic industrial sector and increase in export sales in the last couple of months.
NIIT to have a strategic foreign partner. The foreign partners are expected to take a stake at a price of Rs3400 per share.
Gujarat Lyka is expected to get merged with Sun Pharmaceuticals. The ratio is expected to be in the favor of Gujarat Lyka shareholders. Gujarat Lyka shareholders are expected to get 1 share of Sun Pharmaceuticals for every 20-30 shares of Gujarat Lyka.
Silverline is expected to get SEI-CMM Level 4. Some more good news also expected to follow, the company is planning to declare bonus.
Bharat Forge has bagged an order from a top auto component seller of US. The size of the order is expected to be in the range of US$40mn (Rs1.7bn). The order size is significant, for the company.
Alpha Drugs is tipped of signing a deal with Glaxo, UK Plc for the supply of 50-60MT of trimethoprim (TMP) at US$20/MT. The Company is also heard of signing a contract with other UK company for the supply of 15-20MT of the same product.
India's leading MNC bakery has decided to enter the lucrative mineral water market. The company is looking at various options for entering the market. One of the most likely options is taking over a mineral water company - MountEverest. If the deal clicks, the shareholders of MountEverest will have a gala time.
Corporation Bank is expected to be the first one in the new Government's divestment list. One of the country's top class bank is planning to take over Corporation Bank. Corporation Bank is also ranked amongst the top three banks of the country. Merging of two leaders will change the structure and scenario of the domestic banking industry and ensure the enhancement of the shareholders wealth.
Bonus Pointing Lot
Bonus Pointing Lot to come in BPL. The company is expected to declare a bonus in the ratio of 1: 1. The insiders seem to have already started accumulating the stock. But with the bonus news expected, lots of steam still to evaporate.
Bajaj Auto to have a strategic tie-up with a foreign auto major. The global auto company is expected to take a stake of around 5% in Bajaj Auto. This is expected to improve the sentiments of the market towards the stock, which recently has been hovering around its 52-week low. On the news of the stake, price of the stock can rise by Rs50-100 from the current levels.
BankAm concludes deal with DSQ- The much awaited Bank of America deal with Dinesh Dalmia for taking a stake in DSQ Software has finally taken place. The deal ran into rough weather because the promoters did not have "free shares". Though the news could not be confirmed sources say an intermediary has come to Dalmia's rescue. All their shares were pledged with banks as collateral. Apparently, the intermediary has cleared all bank loans and placed the same with BankAm at an undisclosed price. The stock is likely to witness action now.
Painting a rosy picture- Asian Paints, a leading paint manufacturing company, is expected to declare a bonus in the ratio of 3 shares for every 5 shares held. Asian Paints has a major market share in decorative paint(41%) segment. The company is expected to grow faster following the surge in housing demand throughout the country. In FY99, the company's total equity capital was Rs401.16 mn. The company has reserves and surplus of Rs2.64bn (6.59 times equity). Given the high book value(Rs76) and the fact that the performance of the company is expected to improve in the future, there is every likelihood that the company would reward shareholders with a bonus. Watch the counter.
Compaq India (Digital Equipment) is expected to announce hefty dividend of Rs20 per share (200%).
L&T Information Technologies Ltd, a wholly onwed subsidiary of L&T is not taking%) over Advent Computers. The company sources informed that they have already clarified to media that the take over rumours are baseless and they have only marketing and support arrangement with them. .
Cybermate, a Hyderabad based software company is planning to issue new equity shares on preferential basis. The guy picking up a significant stake in the company is suppose to be a top brass executive of US based Hewlett-Packard (HP). The guy is also suppose to be having quite a few patents registered on his name. This development can significantly change the fundamentals of the company and valuations too !!! ( The stock is currently listed on HSE)
Telco is planning to hive-off its transmission division. The company is reportedly having talks with a US major company. The division is expected to fetch US$ 90mn for Telco. A huge cash inflow for the company. This can be a good opportunity for the company to reduce its interest burden and improve its bottom line. The price of the share is expected tol rise once the company sources confirm the deal.
Indo Gulf is near to sign a deal with a French company for the jetty, which will fetch around Rs600mn to Rs650mn. The deal is expected to materialize in few days's time. This will help the company to improve its cash flow in the coming years.
Grasim Industries is looking to sell its sponge iron division. Grape line hears that the Ispat International group may emerge as a strong suitor. It may interest readers that Mr. L. N. Mittal, who is on the board of ICICI, is said to have recently visited Grasim's sponge iron plant.
Aditya Birla group is restructuring. The group is known to be looking for a third partner in MRPL. Grape line hears that the group may not be averse to sell out its stake and Exxon may be in the running for the same.
Modi Luft, which has in past tried to tie up with major international airlines, is rumored to have inked a deal with British Airways. Though the details of the deal are not known yet company officials were in London recently to negotiate the deal. A leading lawyers firm in Mumbai has already prepared the requisite papers and BA is expected to apply to the government soon to permit it to buy the equity.
Major restructuring is expected in KSB Pumps. It is a MNC stock available at reasonable valuations.
In software, there seems to be a good story in Citicorp Securities. The company is aggressively pursuing an IT enabling strategy, which is expected to yield excellent returns in the medium term.
(Courtesy:Probity) |
