India-Hot stocks.
Ravi:
Just for your information.
Tata Infotech, Tata Elxsi are latest hot picks
Our Mumbai Bureau
--------------------------------------------------------------------------------
21 JANUARY
Add perceived business synergies to an infotech company, undoubtedly the flavour of the year, and you have winner of a company on your hands. At least, that's what punters on Dalal Street think everytime they see Tata Infotech and Tata Elxsi.
The grapevine has, for sometime now, been abuzz with talk that the Tatas may consider merging Tata Elxsi into Tata Infotech. Another variant of this rumour is a three-way merger of Tata Infotech, Tata Elxsi and Nelco.
The share prices of both Tata Elxsi and Nelco have skyrocketed since December 1 last year. So has their market capitalisation. The Tata Elxsi scrip has doubled from Rs 51 to Rs 102 today; its market cap from Rs 160 crore to nearly Rs 300 crore. The Nelco scrip too has doubled, from Rs 10 to Rs 26, even as its market capitalisation has shot up to Rs 60 crore from Rs 23 crore.
A Tata group spokersperson, ruled out the merger. When queried about the share price movement, she said: "We do not wish to comment. There is no synergy whatsoever between the businesses," she added.
|
