Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Mohan Marette who wrote (5930)	8/27/1999 10:40:00 AM
From: Mohan Marette	Respond to of 12475

IPCL stake may be sold by open bidding ipcl.co.in According to newspaper reports, leading petrochemical companies have called for an open auction for the government's 25% stake in Indian Petrochemicals Corporation Ltd. (IPCL). IPCL (FY99 Net Sales: Rs 31.1 bn) is India's second largest integrated manufacturer of polymers, fibre and fibre intermediaries and chemical products. It has two integrated petrochemical complexes and is in the process of setting up a third one. The IPCL bid is likely to elicit a response from major global petrochemical players, including Reliance. The expected response is mainly due to the large size of the domestic market and the turnaround in the petrochemicals cycle, which has made the business environment conducive for fresh investments. An open bidding system will be much quicker and will involve a greater level of transparency as compared with the closed bid system. If the process were to go through successfully, then India would have opened a new avenue for disinvestment. The Finance Bill for FY00 has taken credit for Rs 100 bn arising from disinvestment proceeds. Therefore it is essential that the disinvestment process be pursued in all earnestness to avoid any fiscal implications in the future. Market View: Analysts have rated the stock as a 'BUY' on account of the turnaround in the petrochemicals cycle. Also the proposed handover of the management to a private concern has supported the 'BUY' rating. 27 August, 1999 (Quantum)