Indian economy grows by 7.6% in Q2, FM terms it satisfactory

New Delhi, (PTI) Services and construction sectors helped the Indian economy expand at 7.6 per cent in the second quarter of the current fiscal, prompting government to term the growth as "healthy and satisfactory" even though it was the lowest in any three-month period in the last four years.

The economic growth, as measured by expansion in Gross Domestic Product (GDP), may be seen as slowing down as it clocked a 9.3 per cent a year ago, but it was much better than expected by many analysts, given the global financial meltdown.

"This is a satisfactory and healthy growth rate having regard to global slowdown," Finance Minister P Chidambaram told reporters.

For the second half, the economy registered a 7.8 per cent growth rate, compared with 9.3 per cent a year ago, much in line with official projections for 7-8 per cent for the fiscal.

However, analysts said services, which came to the aid of the economy, are expected to slow down in the coming quarters and the Reserve Bank (RBI) and the government must come out with some stimulating measures to perk up the economy.

"Going forward the services sector is likely to slow down, particularly the hotel construction and transport," Crisil Principal Economist D K Joshi said.

Moody's economy.Com said the government and the RBI should come out with stimulating measures to induce growth.

While construction sector grew by 9.7 per cent in the second quarter from 11.8 per cent a year ago, services sectors displayed similar pattern of high growth, though slightly slower than last year.

However, manufacturing grew by just five per cent in the second quarter from 9.2 per cent a year ago and halved to five per cent in the second half from robust 10.9 per cent.

Chidambaram admitted that manufacturing sector remains a problem area.PTI

Courtesy: ptinews.com

Tina Ambani with her sons

Tina Ambani

Tina Ambanias a part of the Mumbai marathon

Tina's Team  When family friend Tina Ambani organised a senior citizens’ marathon, as a part of the Mumbai marathon, the predictable cheerleader was Abhishek Bachchan. While husband Anil has become a mascot for the marathon, making sure he runs through the city everyday, Bachchan roped in his Bunty aur Babli costar Rani Mukherji, to flag off the event. The star presence drew the cameras—a perfect coup for Tina and her initiative.

SEL Manufacturing receives contract from Russia

Sel Manufacturing Company Ltd., an integrated multi product textile company, has chalked out a mega expansion plan through inorganic route at an investment of Rs 1500 crore.

Under the proposed plan, the company is setting up a technical textile manufacturing facility with a capacity of 90 tonnes per day (TPD) envisaging Rs 611.67 crore. It is also expanding its terry towel project by 25 TPD, taking the terry towel capacity to 35 TPD after implementation. Sel is a 100 per cent export oriented garment producer.

It has appointed IL&FS, Kotak Mahindra Capital and SBI Caps to arrange targets from the domestic market. It is in talks with Citibank, Credit Suisse and Barclays to rope in an adviser for its overseas acquisition.

For the financial year 2007-08, the standalone net sales of the company was recorded at Rs 357.31 crore while the net profit stood at Rs 44.85 crore. Consolidated net sales was Rs 400.07 crore.

Courtesy: business-standard.com

Tesco enters Indian retail with Tata Trent

After wooing many Indian realty majors and retailers, including Bharti, the Wadias, DLF and Parsvnath, UK's largest retailer Tesco has decided to go solo by developing a cash-and-carry business with an investment of £ 60 million in the first two years.

It has simultaneously zeroed in on a tie-up with Trent, the Tata group retail arm, to develop the latter's discount hypermarket format.

The cash-and-carry business, also known as wholesale outlets, is the only retail format where 100% FDI is allowed. Tesco international & IT director Philip Clarke said, "We have made no secret of our wish to enter India and have had a team here for almost three years studying the market, talking to businesses and consumers and looking for the right way forward.''

While Tesco joins German rival Metro--the first to enter India in 2003--in opting for the wholly-owned cash-and-carry operations, Wal-Mart has a 50:50 JV with Bharti group and Carrefour is still exploring India.

The exclusive arrangement with Trent, for which Tesco will receive a fee, is one where the former can draw from the British chain's vast retail expertise and technical capability to support its own big box format Star Bazaar, which has been on a slow track, according to retail analysts. Launched in 2004, there are four Star Bazaar stores in the country.

Looking for sharper management focus and improvement in operations, Star Bazaar was recently transferred to a 100% Trent subsidiary, Trent Retail. "In large format retailing in India, hypermarket is the most challenging and eventually rewarding, as it has been abroad,'' said Trent MD Noel N Tata.

This (Star Bazaar transfer to Trent Retail) was done to beef up its large box format through local sourcing arrangements as against national sourcing.

This was done because as the latter was unviable, especially in food and groceries, due to infrastructure bottlenecks, tax inefficiencies and high freight costs. Another reason for hiving off Star Bazaar was that it could have tie-ups with international retailers to enhance its know-how.

Both these requirements will be fulfilled through Tesco association. Apart from accessing the $99.5-billion Tesco's marketing, stock management, retail information systems, cold-chain infrastructure and front-end services expertise, Trent will source merchandise for Star Bazaar from Tesco's wholesale outlets in India.

Tesco has 3,729 stores in 13 countries. Its first wholesale outlet will be set up in Mumbai shortly. However, unlike South African chain Shoprite, which has a brand franchise alliance with city-based realty firm Nirmal Lifestyle, the Tesco-Trent deal wouldn't see any Tesco branding at Star Bazaar outlets.

Trent's other retail formats are Westside (apparel and lifestyle), Landmark (books and music) and Sisley (manages the Italian apparel brand).

"From one store in 2004, we at present have four stores, which will be expanded further," Tata added.

Courtesy: timesofindia.indiatimes.com

Market will be volatile untill Aug 22

Market will be volatile untill Aug 22

``With BSE, below the 15,150 level markets look weak upto 14,786 level, the latter being an important level for a bullish market. Also 39 new stocks having been introduced in the F&O is a healthy sign for the midcap stocks,`` said technical analyst, Vishwas Agarwal.

Agarwal further added, ``Coming holidays are also the reason for some profit booking. Overall view is still strong; market will be volatile until August 22 and will not give easy money.``

Courtesy: myiris.com

Latest IPO Grey Market Premium Rates as on 09-August-08

Latest IPO Grey Market Premium Rates as on 09-August-08

Grey Market Premium Rates as on 09-August-08

Company -> Open/Close -> Offer Price -> Premium

Resurgere Mines & Minerals Limited -> 11 August - 13 August -> 263 to 272 -> 17 to 18

Austral Coke And Projects Ltd -> 07 August - 13 August -> 164 to 196 -> 04 to 05

NuTek India Limited -> 29 July - 01 August -> 170 to 192 -> 06 to 07

Vishal Information Technologies Limited -> 21 July - 24 July -> 140 to 155 -> 03 to 04.50

Courtesy: greymarket.co.in

Resurgere Mines & Minerals India Ltd IPO Information

Resurgere Mines & Minerals India Ltd IPO Information

• Public Issue Open: Aug 11, 2008 to Aug 13, 2008
• Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
• Public Issue Size: 44,50,000 Equity Shares of Rs. 10/-
• Face Value: Rs. 10/-
• Public Issue Price: Rs 263/- to Rs 272/-
• Market Lot: 20 Shares
• Minimum Order Quantity: 20 Shares
• Maximum Subscription Amount for Retail Investor: Rs 100,000/-
• Listing: BSE, NSE
• Lead Manager: Motilal Oswal Investments Advisors Pvt Ltd
• Registrar: Intime Spectrum Registry Ltd (Ph: +91-22-25960320 Email: rmmil.ipo@intimespectrum.com)

Courtesy: chittorgarh.com

Vishal Information Technologies Ltd IPO Allotment Status - Click here

Vishal Information Technologies IPO Allotment Status



Vishal Information Tech Ltd IPO - Listing on Monday, August 11, 2008.
Bidding Status (IPO Subscription day by day)

No. of times issue is subscribed (BSE + NSE)
As on Date QIBs Non Institutional Retail (RIIs) Total
Day 1 - 21-Jul-2008 17:00:00 IST 0.0000 0.0000 0.0036 0.00
Day 2 - 22-Jul-2008 17:00:00 IST 0.0000 0.5795 0.0122 0.09
Day 3 - 23-Jul-2008 17:00:00 IST 0.0000 0.7340 0.2794 0.21
Day 4 - 24-Jul-2008 17:30:00 IST 0.4492 1.3584 2.1850 1.19


Courtesy: chittorgarh.com

'Rel Infra, Globalcom IPO only after markets stabilise' - Anil Ambani

Reliance ADAG Chairman Anil Ambani on Thursday said inital public offering of two group companies Rel Infra, Globalcom would commence only after the volatility in global and domestic market subsides.

“We have received the approvals on the Red Herring Prospectus… The volatility in global and Indian capital markets is what we are watching,” he said, adding that a decision would be taken at an appropriate time.

Replying to queries on the IPO of Reliance Infratel in India and listing of Globalcom in London, he told market analyst, “When we find an appropriate time, I am sure that we will proceed both with Globalcom and Reliance Infratel.
“We are using this time to complete the roll out on Infratel and also in our negotiations with our prospective customers for Globalcom”, he said in his post financial result conference.

Courtesy: greymarket.in

Mutual Fund industry down by 6% in July 2008

The mutual fund industry witnessed an over six per cent drop in its assets under management for the second consecutive month in July, led by country's top fund house Reliance MF, which lost over Rs 6,000 crore in the period.

The combined average assets under management (AUM) of the 34 fund houses in the country dropped to Rs 5,29,629.46 crore in July, as compared to 5,64,752.76 crore in June, according to the data released by the Association of Mutual Funds in India (AMFI).

Analysts believe the bearish sentiments in the market and hardening of interest rates led to heavy redemptions last month leading to the sharp drop in average assets under management.

"The sharp drop in AUMs has been entirely due to heavy redemptions from investors during the month amid the volatility in the stock market...this shows investors are beginning to get impatient," mutual fund tracking firm Value Research Online CEO Dhirendra Kumar said.

Reliance MF registered the biggest drop of over Rs 6,200 crore in its average Assets under Management (AUM) in July.

However, despite a 6.88 per cent fall in its average AUM, Reliance Mutual Fund continues to be the top fund house in the country with assets valued at Rs 84,563.91 crore last month, against Rs 90,813.45 crore in the previous month.

"The stock market have been suffering in the month as the market value of investment is on the decline and the hardening of interest rates has made its difficult for banks and corporates to keep their surplus cash in income schemes, which led to withdrawal of funds from them," Taurus Mutual Fund Managing Director R K Gupta said. MORE PTI

ICICI Prudential, the second largest mutual fund, witnessed a loss of Rs 4,313 crore in its assets at Rs 55,160.66 crore in July, from Rs 59,473.58 crore in June.

HDFC Mutual Fund, which beat state-run UTI MF to notch the third slot in June, reported an average AUM of Rs 50,752.03 crore in July, down from last month's Rs 52,710.80 crore.

UTI Mutual Fund continued its fall in the average AUM, which was Rs 46,119.91 crore at the end of July, down 9.16 per cent from June's figure of Rs 50,770.57 crore.

Besides, AUM of Franklin Templeton MF stood at Rs 24,440.94 crore in July, against Rs 24,742.06 crore in the previous month.

Meanwhile, about eight fund houses managed to increase their assets under management in July which include -- ABN Amro MF, Benchmark MF, JP Morgan, Lotus India and Mirae Assets.

Courtesy: economictimes.indiatimes.com

Allied Blenders and Distillers plans for IPO

Liquor baron Kishore Chhabria wants to take his Allied Blenders and Distillers (formerly BDA Ltd) public to raise up to Rs 400 crore. But before that he wants to clean up his balance sheet and even get some private equity funds to invest in his company.

Allied Blenders’ and Distillers (ABD) Executive Vice-Chairman and Chief Executive Officer, Deepak Roy, told Business Line that a road map leading up to the IPO has been put in place. Once the balance sheet is cleaned up which should happen sometime this year itself, the company will raise a debt of around Rs 100 crore to acquire some distilleries. The IPO plans will be tied to the market conditions but the company expects to raise up to Rs 400 crore to fund its various expansion plans.

Greenfield projects

Roy, who owns about five per cent in ABD, said initially, around Rs 100 crore will be invested in acquiring four greenfield bottling plants and some bottling plants in Andhra Pradesh, Punjab and West Bengal which should reduce dependence on outsourcing. It also plans to set up its own primary distillery unit which will provide between 20 per cent and 25 per cent of spirits for its own use. Currently, the company uses about 25 bottling units for outsourcing its needs.

Roy said the company’s balance sheet was very weak and not adequately funded and carried a lot of debts. “We are going to clean up (the balance sheet) all that which will allow us to raise capital,” he said. The turnover of all ABD’s products is about Rs 800 crore and recorded a growth of about 49 per cent during the first quarter of this financial year. During the last three years, the company grew at a compounded rate of about 19 per cent.

New Launches

ABD also wants to reduce its dependence on a single brand, ‘Officer’s Choice,’ whish is considered the second largest brand in the prestige whisky segment in India. It is in the process of launching Germany’s leading vodka brand,

Wodka Gorbatschow in most markets and a few other brands during the next few years.

During FY08, ABD reported a growth of 30 per cent in sales of the brand to 6.6 million cases and a total sales of 6.86 million cases which grew at 22 per cent.

The IMFL industry grew at about 22 per cent.

The company has projected sales of 8.5 million cases during this fiscal.

MCX postpone its IPO

Falling stock market and rising interest rates have promoted India’s largest commodity bourse, the Multi Commodity Exchange (MCX), postpone its initial public offering (IPO) for now.

MCX had filed the Draft Red Herring Prospectus (DRHP) for the IPO in February. This was for the first time that a commodity exchange filed application with the market regulator, Securities & Exchange Board of India (SEBI) for an IPO that planned to raise Rs 500 crore to Rs 600 crore.

But top MCX officials said on Sunday that the IPO plans have been shelved for the time being. MCX Managing Director and CEO Joseph Massey said that the exchange has decided to postpone the IPO “taking into consideration the market scenario and the advice of the merchant bankers to defer the issue.”

The main reasons that has compelled MCX defer the IPO are the falling stock market, rising interest rates and the possibility that the government may introduce the commodities turnover tax on commodity exchanges.

Finance Minister P Chidambaram has proposed in the Budget a tax of 0.017% on the seller of a commodity contract and 0.125% on the buyer. Besides, a service tax of 12% on the exchange levy and an education cess on the tax are also planned.

Commodity exchanges, brokers and the apex Forward Markets Commission have opposed the commodities transaction tax (CTT) saying it would adversely affect futures trading in commodities.

MCX, promoted by Financial Technologies India Limited, is India’s biggest commodity exchange for the trading of precious metals, ferrous and non-ferrous metals, energy agriculture and industrial commodities.

Founded in 2003, MCX has exhibited strong leadership in product innovation, trading and clearing functionality, self-regulation, transaction cost efficiency and customer focus, positioning MCX to compete on a global scale.

Courtesy: greymarket.in

Growth stocks: Riddhi Siddhi Gluco Biols

Starch and Sweetners manufacturer Riddhi Siddhi Gluco Biols is set to announce outstanding results in the June quarter. This agroprocessing company’s underperformance is mainly due to fire in Gokak plan which disrupted its business for 6 months. Both Uttarakhand and Gokak (Karnataka) plants are now operating and company is expected to post turnaround results in the coming quarters. Company bought Bio-polymers business from Hindustan Unilever and this midcap corn-wet-miller company is planning to use this Pondicherry unit as a research hub.

Riddhi Siddhi Gluco stock price analysis:

CMP: 188.25
P/E: 10.6
Book value: 123
1 year high-low: 309-166

Riddhi Siddhi stock target price:

1 year target: 350-380. One will surely get more than 80% returns in 1 year. EPS for FY09 will be around 35-40.

Why Riddhi Siddhi Gluco is a “must buy”?

1. EPS is expected to increase from 18 to 40 by conservative estimates.
2. Sales are expected to grow by 70% and profit may rise by 120%, according to analysts.
3. Agro-processing has huge prospects.
4. Government will promote agriprocessing business aggressively in the next budget.
5. Aggressive expansion plans will help the company in the next 2 years to post good results.

Verdict: Riddhi Siddhi Gluco Biols is a very good stock for accumulation to get more than 80% annual returns. Accumulate this stock without hesitation on any fall for long term investment. This midcap company set to outperform the market in the next 12 months.

Stock rumor: Sony Ericsson may acquire Spice mobile

Sony Ericsson is in advanced talks to acquire Spice Mobile. According to Economic Times, Sony Ericsson is in advanced talks with BK Modi of Spice Mobiles to acquire his 64% stake in the company. According to ET, Modi demanded Rs 80-100 per share from the world’s 3rd largest mobile handset manufacturing company means Spice Mobile will be valued at around Rs 700 crore. This is a steep valuation for the company but Modi is an expert in getting good bargain (Spice Communications sale).

Spice Mobile valuations:

On July 10th: Rs 177 crore (Share price-22.7)

Modi asking rate: Rs 700 crore (share price 80-100).

If this takeover materialises, it will be a windfall for the shareholders of Spice Mobile. Sony Ericsson is in desperate need to get strong foothold in fastest growing Indian market. Nokia is holding more than 65% market share but Sony has good presence in high end market. If Sony Ericsson acquires Spice Mobile, it will give access to low end market.

In India, major growth is happening in the cheap mobile handset segment. Even though this segment offers low margins but it is high in volumes. Unless one gets a strong foothold in this segment, it is impossible to gain market share in India. Even though Spice Mobile is a late entrant in India, it is ideally positioned to give tough competition to Nokia. Sony Ericsson is buying Spice Mobile to make strong presence in this segment.

Spice Mobile stock price analysis:

CMP: 22.70
P/E: 9
1 year high-low: 36-16.

Spice Mobile target price:

1. If deal fails: This news still act as short term trigger.
2. If deal goes on expected lines: Investors will get more than 300% returns in 2-3 months.
3. If deal will happen on moderate grounds: Investors will get 100-150% returns in 2-3 months.

Spice Mobile stake holdings:

Promoters: 64%
Public: 14%
Other corporate: 22%

If Sony Ericsson acquires Modi’s 64% stake in Spice Mobile, it will need to make an open offer, according to regulations. Closely follow this scrip. If Sony Ericsson acquires Spice business, it will become the second largest mobile handset company in India.

Somi Conveyor - another poor debut for IPO

Settles at Rs 25.90 on BSE compared to IPO price of Rs 35

Somi Conveyor Beltings settled at Rs 25.90 on BSE, a discount of 26% over the initial public offer price of Rs 35. The stock debuted at Rs 37.65 which was also the high for the day. At the debut price of Rs 37.65, the stock attracted 5% premium over the IPO price.

It hit a low of Rs 24.70. On BSE, 75.87 lakh shares changed hands in the counter.

The current price of Rs 25.90 discounts the company's nine months ended December 2007 annualised EPS of Rs 1.1 by a PE multiple of 23.54.

The fixed price IPO of Somi Conveyor Beltings was subscribed 1.92 times.

The company had entered the capital markets on 24 June 2008 with an issue of 62.27 lakh equity shares of Rs 10 each at a fixed price of Rs 35 (including a premium of Rs 25 per equity share) aggregating to Rs 21.79 crore.

The company is manufacturs rubber conveyor belts of various sizes used for industrial applications of material handling in various industries such as coal, lignite, iron ore, mining, cement, power, steel, fertilizer and sugar and it has also recently introduced food grade belts for tea gardens and salt industries.

The company proposes to utilize the net proceeds of the issue to part finance its Rs 35.09 crore project cost. The expansion and modernization project consists of setting up of new manufacturing unit, purchase of land and building for office use, meeting margin money requirement for enhanced working capital and meet the interest cost during the construction period. The company, earning profits since last 5 years, had commenced production with an initial capacity of 36,000 meters per annum (MPA) and it has expanded to present operating capacity of 1,67,660 MPA. Depending upon the width of the rubber conveyor belt the capacity utilization can be stretched up to 2,00,000 MPA.

The company reported a net profit of Rs 0.96 crore on sales of Rs 10.92 crore in nine months ended December 2007.

Courtesy: capitalmarket.com

Pantaloon retail offers 1:10 bonus share

Pantaloon Retail, the country's biggest listed retailer, today approved a proposal to give shareholders one bonus share with different voting and dividend rights for every 10 held.

The new shares called Class B shares will get 5 per cent more dividend than ordinary shares and would be entitled to one vote for every 10 held.

Pantaloon will be among the first companies to offer such a financial instrument in India. Some of the global companies that have issued shares with differential voting rights include Berkshire Hathaway, Google and News Corp.

The record date will be fixed after the necessary approvals are obtained by the company, Pantaloon said in a release.

Explaining the rationale behind the initiative, Pantaloon Managing Director Kishore Biyani said that differential voting rights (DVRs) have become a widely-used innovative instrument in global markets and, by coupling a bonus issue with a DVR, the company is offering another alternative to its shareholders.

"DVRs meet the different requirements of different shareholder groups and, with this issuance, we will be introducing a new financial instrument for the new economy," he said. Enam Securities is the advisor to Pantaloon Retail to this issuance.

Under the Companies Act, a firm that has been profitable for three years and which has no default record in filing annual accounts and returns can issue shares with DVRs.

The issue has to be approved by shareholders and should not exceed 25 per cent of the total share capital issued. Further, family-owned businesses can issue shares with DVRs to members of their family.

Experts said DVRs can arm promoters with a minority holding in their companies with a potent tool to fight hostile takeovers. However, grey areas in Indian laws have dissuaded promoters from using DVRs.

Already, a case involving Karamjit Jaiswal and his company LP Jaiswal & Sons of Jagatjit Industries and his step-brothers Anand Jaiswal and Jagajit Jaiswal has reached before the Company Law Board over the use of DVRs in 2004. LP Jaiswal & Sons subscribed to 2.5 million shares in Jagatjit Industries, increasing its stake to 19.1 per cent from 15 per cent.

However, each of these 2.5 million shares carried 20 voting rights. Karamjit Jaiswal later bought 2.19 million ordinary shares, increasing his stake to 13 per cent from 8.59 per cent.

With this, he and LP Jaiswal together owned a combined 32.1 per cent in Jagatjit Industries. However, because of the DVRs of the shares acquired by LP Jaiswal & Sons, this minority holding translated into voting rights of 62 per cent, giving Karamjit Jaiswal complete control over the company allowing him to fend off a hostile takeover bid from his step-brothers.

Courtesy: business-standard.com

Nu Tek India Limited IPO Information

Incorporated in 1993, Nu Tek India Limited is a Telecom infrastructure service provider, offering Infrastructure rollout solutions for both mobile and fixed telecommunication networks. Nu Tek offer services to Telecommunication Equipment Manufacturers, Telecom operators as well as third party infrastructure leasing companies in installing and maintaining Telecom Network Equipment & Infrastructure.

Nu Tek undertake turnkey projects, provide management expertise to their clients for infrastructure creation and installation for telecom sites which includes Passive Infrastructure like Towers, Telecom Shelters, Backup Power - DG sets and Battery Banks, Electrical Infrastructure and Earthing Stations etc. and active infrastructure like Base Transceiver Station (BTS), microwave, optic fibre, Base Station Controller (BSC), Mobile Switching Centres (MSC), IN (Intelligent networks), VAS (Value added services) equipments, transmission equipment such as STM’s and Microwaves to the most advanced World Interoperability for Microwave Access (WIMAX) equipment and future ready 3G Nodes. Company also provide technical support services in the High End Telecom segments such as Radio Frequency and Transmission Planning, Network Tuning & Optimization and Quality of Service (QoS) to their clients.

Major clients amongst Telecom Equipment Manufacturers are:
1. Nokia Siemens Networks Pvt Ltd
2. Ericsson India Pvt Ltd
3. Motorola India Pvt Ltd
4. Nortel Networks India Pvt Ltd

Major clients amongst Telceom Operators are:
1. Tata Teleservices Ltd
2. Reliance Communications Ltd
3. Bharti Airtel Ltd
4. Idea Cellular Ltd
5. Vodafone Essar Ltd(Hutch)
6. Videsh Sanchar Nigam Ltd

Major clients amongst third party infrastructure leasing companies are:
1. Quipo Telecom Infrastructure Ltd
2. Essar TTIL Ltd
3. Xcel Telecom Ltd
4. IMI Ltd

Objects of the Issue:
1. The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital for: Capital Expenditure;
2. Overseas Acquisitions;
3. Augmenting Long Term Working Capital requirement;
4. General Corporate Purposes;
5. Expenses related to Fresh Issue.

Nu Tek India Ltd IPO Information:
»» Public Issue Open: July 29, 2008 to August 01, 2008
»» Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
»» Public Issue Size: 4,500,000 Equity Shares of Rs. 10/-
»» Face Value: Rs. 10/-
»» Public Issue Price: Rs 170/- to Rs 192/-
»» Maximum Subscription Amount for Retail Investor: Rs 100,000/-
»» Listing: BSE, NSE
»» Lead Manager: Spa Merchant Bankers Ltd, India Infoline Ltd
»» Registrar: Aarthi Consultants Pvt Ltd (Ph: +91-40-27638111 Email: info@aarthiconsultants.com)

Courtesy: Chittorgarh.com

Sensex nudges 15000 mark and Nifty nudges 4500

MUMBAI: The market gathered further momentum in afternoon trade as firm European markets and crude oil's fall fuelled the rally. Banks, power and capital goods extended gains.

At 3 pm, Bombay Stock Exchange's Sensex surged 850 points or 6.04 per cent at 14,955.63. The index rose to high of 14,955.63 from a low of 14,568.22 in trade so far.

National Stock Exchange's Nifty rose 5.59 per cent or 237 points to 4476.95. The index touched a high of 4491.55 and low of 4246.70.

Second rung stocks were in action as well. BSE Midcap and Smallcap indices were up 5.12 per cent and 4.19 per cent respectively.

Biggest Sensex gainers were Reliance Communications (12.57%), BHEL (12.49%), ICICI Bank (12.2%), Reliance Infrastructure (11.72%), HDFC (10.31%) and State Bank of India (9.7%).

Cipla, down 1.28 per cent, was the only loser in the 30-share index.

Market breadth was extremely positive with 2239 advances and 407 declines on BSE. On NSE, there were 1172 advances and 102 declines.

Courtesy: economictimes.indiatimes.com

Sasken Communication rings on strong Q1 results

Sasken Communication Technology gained 2.38% to Rs 137.70 at 15:29 IST on BSE on reporting 29.24% rise in net profit to Rs 9.15 crore in Q1 June 2008 over Q4 March 2008.

The company announced the results during trading hours today, 18 July 2008.

Meanwhile, the BSE Sensex was up 519.13 points, or 3.96%, to 13,630.98, helped by a 10% decline in oil prices this week.

On BSE, 11.47 lakh shares were traded in the counter. The scrip had an average daily volume of 8.85 lakh shares in the past one quarter.

The stock hit a high of Rs 142 and a low of Rs 130 so far during the day. The stock had a 52-week high of Rs 493.65 on 20 July 2007 and a 52-week low of Rs 84 on 24 March 2008.

The small-cap company had underperformed the market over the past one month till 17 July 2008, declining 16.23% compared to the Sensex’s decline of 14.98%. It had outperformed the market in the past one quarter, declining 6.56% compared to Sensex’s decline of 20.44%.

The company has an equity capital of Rs 28.56 crore. Face value per share is Rs 10.

The current price of Rs 137.70 discounts its Q4 March 2008 annualised EPS of Rs 9.92, by a PE multiple of 13.88.

Sasken Communication Technology’s total income rose 7.81% to Rs 110.72 crore in Q1 June 2008 over Q4 March 2008.

The company provides telecommunication software services and solutions. The group operates in three segments, software services, software products and network engineering services.