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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5750)	8/20/1999 5:48:00 PM
From: Mohan Marette	Respond to of 12475

JM Morgan picks up 3.7% in Gujarat Gas (Courtesy:The Hindu Business-Line) Nalini Nayak MUMBAI, Aug. 20 JM MORGAN Stanley Securities is reported to have picked up about 4.5 lakh shares of Gujarat Gas Company (GGCL) mounting to 3.76 per cent of the company's equity. While the spokesperson of JM Morgan declined to comment on the issue, market sources confirmed the move in the light of the plant visit organised by Morgan Stanley for their clients. According to market sources, the plant visit was organised during the second week of August. The shares, according to market sources, have been picked up through open market transactions. GGCL touched a new high of Rs. 509.75 on the BSE on Friday. According to market sources, news of the meeting between the managing director of GGCL, Mr. Edwin Bowles, with the top officials of Morgan Stanley Dean Witter Investment Management infused new life into the stock. Intra-day the stock ruled at Rs. 462.40. However, soon after the talk of this meeting the stock bounced back to be locked at the upper limit of the price band. The official spokesperson of Dean Witter also declined to comment on the development. Prices of GGCL have moved up substantially following a hike in gas prices recently. According to analysts, the company's realisations are expected to improve with the increase in gas prices. Gujarat Gas Co, a subsidiary of British Gas, is in talks with Interlink Petroleum and L&T for acquiring their equity stake in two gas fields in Gujarat. Analysts said GGCL is likely to finalise its acquisition over the next three months. The company recently tied up with L&T for purchase of gas. According to industry sources, the acquisition is an intermediate step which would enable GGCL to lock in customers before the proposed LNG projects in Gujarat are completed. GGCL, which has plans to enhance its gas distribution, has decided to acquire control over gas fields which would ensure regular supply of gas at more competitive prices.