Auto makers, banks slip at the start
The market eked out meagre gains in opening trade, but lost steam as auto makers and banks slipped.
At 10:18 IST the Sensex was up 20 points, at 14,498. The Sensex had risen as many as 50.79 points, to a high of 14,528.98, by 10:04 IST. The Sensex had struck an all-time high of 14,564.80 on Tuesday (6 February 2007).The market-breadth was strong. For 1,281 shares rising on BSE, 590 declined. Just 48 shares were unchanged. Gainers outpaced losers by a ratio of 2.17:1.The BSE clocked a turnover of Rs 668 crore.
Carmakers slipped on reports of banks planning to raise interest rates by 0.5 - 1% on automobile loans. Car maker Maruti Udyog lost 0.6% to Rs 946.50, while Tata Motors shed 0.8% to Rs 913.
ICICI Bank gained 1.1% to Rs 967.95, after raising its reference rate by 1% for corporate loans and home loans from 9 February 2007. However, other banks slipped. State Bank of India (SBI) lost 0.4% to Rs 1190 and HDFC Bank shed 0.2% to Rs 1085.
Modest debut for Akruti Nirman
Akruti Nirman was trading at Rs 669 on BSE in early trade, a premium of 23.8% over the IPO price of Rs 540.The stock hit a low of Rs 661, and a high of Rs 729. It had debuted at Rs 701.35. As many as 80,455 shares changed hands in the counter on BSE.
The company had priced its IPO at the higher end of the Rs 475 - Rs 540 price-band. The face value per share is Rs 10.
Akruti Nirman is primarily a developer of commercial and residential properties. Its key focus area is real estate development on slum rehabilitation land in Mumbai. Since 1989, the company has developed nearly five million square feet of building area, of which approximately 4.8 million sq. ft. have been developed on land made available for development through participation in slum rehabilitation projects.
As part of its growth strategy, the company is planning to expand into Pune and Bangalore, and intends to expand its business into other cities, particularly where it sees future potential for slum rehabilitation. The company’s IPO was for financing its existing projects; land acquisition, repayment of loans and meeting general corporate expenses.
The principal financial advantage to the company as part of the slum rehabilitation schemes is that it is not required to pay substantial, one-off land purchase costs at the beginning of each project to acquire the use of such land. On the flip side, slum rehabilitation projects are risky as they usually have long gestation periods.
On the basis of valuations of 35 projects given in the prospectus, the NAV per share of the company works out to Rs 604.
The current price of Rs 669 discounts its FY-2006 EPS of Rs 9.50 (based on consolidated financial performance) by a PE multiple of 70.4. The post-issue equity of the company is Rs 66.70 crore.
ICICI Bank upbeat on hiking lending rates
Private sector ICICI Bank gained 1.30% to Rs 969.50, after it said it will increase its reference rate for corporate loans and home loans by 1% from 9 February 2007.
The counter clocked 34,866 shares on BSE.The stock slipped in the past few sessions. From Rs 985.25 on 25 January, it declined to Rs 946.80 by 5 February, as selling continued. Here, it found support and rose to Rs 957.35 on 6 February, as buying resumed.
The bank's benchmark rate for corporate loans will be at 14.75% and the rate for home loans would be at 11.75% after the increase. The move comes nearly a week after the Reserve Bank of India (RBI) raised its key short-term interest rate, the repo rate, by 25 basis points to 7.5%. ICICI Bank's ADR rose 1.3% on Tuesday (6 February) to $45.01 on the New York Stock Exchange, on news of the hike in its lending rates.
Besides home loans, all other rates, including that on auto loans, two-wheeler loans, loans against shares and loans for corporates will see a rise of 100 basis points. Rates on corporate loans will also move up.
ICICI bank has also announced a 1.25% increase in interest rates to 9.50% from 8.25% for fixed deposits (under Section 80C) of value less than Rs 1 lakh and having a five-year tenure with effect from 9 February 2007. The bank, on 20 January 2007, raised deposit rates in the range of 0.25-1.25%.
ICICI Bank is the largest retail player in the country. The institution presently charges 11% on fixed rate loans and 9.5% on floating rate loans.
Retail loans, especially home loans, have been growing at a scorching pace of 35% over the last four years. The latest hike could help slow down the growth. But ICICI Bank says it is cost, and not pace that's the immediate concern.
ICICI Bank last hiked its lending rates by 50 basis points on 13 December, post a hike in the cash reserve ratio (CRR) ratio. The bank, on Tuesday, announced an increase of 1% in its benchmark advance rate (I-BAR) and its floating reference rate (FRR) for consumer loans (including home loans) with effect from 9 February 2007. The revised I-BAR will be 14.75% against 13.75% at present, while the revised FRR will be 11.75% per annum against the present 10.75%.
ICICI Bank’s Q3 December 2006 net profit rose 42.20% to Rs 910.08 crore from Rs 640.08 crore in Q3 December 2005. Total income for the quarter jumped 59.60% to Rs 7805.24 crore from Rs 4891.65 crore in the year ago quarter.
Cambridge Tech comes into its own after debut
Software service provider Cambridge Technology Enterprises opened at Rs 48.90 on BSE, a premium of 28.68% over the IPO price of Rs 38.By 10:45 IST the stock was up 63.49% to Rs 79.95, compared with the listing price of Rs 48.90. The scrip has also hit a low of Rs 48, and a high of Rs 88.50.The counter clocked a huge volume of 41.97 lakh shares within the first 45 minutes on the bourses.
Cambridge Technology Enterprises (CTEL) issue, which closed on 9 January 2007, was oversubscribed six times. The company offered 63.15 lakh equity shares of Rs 10 each at a premium of Rs 38, to raise Rs 24 crore.
The 50% proceeds of the IPO are being allocated for acquisition. The remaining is spread between expansion of facilities, competency centres, reusable components library apart from other support infrastructure and working capital.
According to the offer document, the top-five clients in 2005 accounted for 75% of revenues and in the first quarter ended 30 June 2006, 54% of the revenues came from two customers. In addition, all its revenues accrue from clients in the US, with hardly any geographic spread.
For the 15 months ended 31 March 2006, the company clocked revenues of Rs 18.4 crore and post-tax earnings of Rs 3.84 crore.
CTEL is a software service provider focussed on the emerging area of service oriented architecture (SOA). The business opportunities linked to this are immense. SOA, a flexible and adaptive model of service delivery on an open platform, is being adopted in a big way by companies such as Oracle through its fusion strategy, SAP through NetWeaver, and IBM via Websphere. As a part of its project contours, CTEL plans to set up competency centres for Oracle, SAP and IBM.
At 10:18 IST the Sensex was up 20 points, at 14,498. The Sensex had risen as many as 50.79 points, to a high of 14,528.98, by 10:04 IST. The Sensex had struck an all-time high of 14,564.80 on Tuesday (6 February 2007).The market-breadth was strong. For 1,281 shares rising on BSE, 590 declined. Just 48 shares were unchanged. Gainers outpaced losers by a ratio of 2.17:1.The BSE clocked a turnover of Rs 668 crore.
Carmakers slipped on reports of banks planning to raise interest rates by 0.5 - 1% on automobile loans. Car maker Maruti Udyog lost 0.6% to Rs 946.50, while Tata Motors shed 0.8% to Rs 913.
ICICI Bank gained 1.1% to Rs 967.95, after raising its reference rate by 1% for corporate loans and home loans from 9 February 2007. However, other banks slipped. State Bank of India (SBI) lost 0.4% to Rs 1190 and HDFC Bank shed 0.2% to Rs 1085.
Modest debut for Akruti Nirman
Akruti Nirman was trading at Rs 669 on BSE in early trade, a premium of 23.8% over the IPO price of Rs 540.The stock hit a low of Rs 661, and a high of Rs 729. It had debuted at Rs 701.35. As many as 80,455 shares changed hands in the counter on BSE.
The company had priced its IPO at the higher end of the Rs 475 - Rs 540 price-band. The face value per share is Rs 10.
Akruti Nirman is primarily a developer of commercial and residential properties. Its key focus area is real estate development on slum rehabilitation land in Mumbai. Since 1989, the company has developed nearly five million square feet of building area, of which approximately 4.8 million sq. ft. have been developed on land made available for development through participation in slum rehabilitation projects.
As part of its growth strategy, the company is planning to expand into Pune and Bangalore, and intends to expand its business into other cities, particularly where it sees future potential for slum rehabilitation. The company’s IPO was for financing its existing projects; land acquisition, repayment of loans and meeting general corporate expenses.
The principal financial advantage to the company as part of the slum rehabilitation schemes is that it is not required to pay substantial, one-off land purchase costs at the beginning of each project to acquire the use of such land. On the flip side, slum rehabilitation projects are risky as they usually have long gestation periods.
On the basis of valuations of 35 projects given in the prospectus, the NAV per share of the company works out to Rs 604.
The current price of Rs 669 discounts its FY-2006 EPS of Rs 9.50 (based on consolidated financial performance) by a PE multiple of 70.4. The post-issue equity of the company is Rs 66.70 crore.
ICICI Bank upbeat on hiking lending rates
Private sector ICICI Bank gained 1.30% to Rs 969.50, after it said it will increase its reference rate for corporate loans and home loans by 1% from 9 February 2007.
The counter clocked 34,866 shares on BSE.The stock slipped in the past few sessions. From Rs 985.25 on 25 January, it declined to Rs 946.80 by 5 February, as selling continued. Here, it found support and rose to Rs 957.35 on 6 February, as buying resumed.
The bank's benchmark rate for corporate loans will be at 14.75% and the rate for home loans would be at 11.75% after the increase. The move comes nearly a week after the Reserve Bank of India (RBI) raised its key short-term interest rate, the repo rate, by 25 basis points to 7.5%. ICICI Bank's ADR rose 1.3% on Tuesday (6 February) to $45.01 on the New York Stock Exchange, on news of the hike in its lending rates.
Besides home loans, all other rates, including that on auto loans, two-wheeler loans, loans against shares and loans for corporates will see a rise of 100 basis points. Rates on corporate loans will also move up.
ICICI bank has also announced a 1.25% increase in interest rates to 9.50% from 8.25% for fixed deposits (under Section 80C) of value less than Rs 1 lakh and having a five-year tenure with effect from 9 February 2007. The bank, on 20 January 2007, raised deposit rates in the range of 0.25-1.25%.
ICICI Bank is the largest retail player in the country. The institution presently charges 11% on fixed rate loans and 9.5% on floating rate loans.
Retail loans, especially home loans, have been growing at a scorching pace of 35% over the last four years. The latest hike could help slow down the growth. But ICICI Bank says it is cost, and not pace that's the immediate concern.
ICICI Bank last hiked its lending rates by 50 basis points on 13 December, post a hike in the cash reserve ratio (CRR) ratio. The bank, on Tuesday, announced an increase of 1% in its benchmark advance rate (I-BAR) and its floating reference rate (FRR) for consumer loans (including home loans) with effect from 9 February 2007. The revised I-BAR will be 14.75% against 13.75% at present, while the revised FRR will be 11.75% per annum against the present 10.75%.
ICICI Bank’s Q3 December 2006 net profit rose 42.20% to Rs 910.08 crore from Rs 640.08 crore in Q3 December 2005. Total income for the quarter jumped 59.60% to Rs 7805.24 crore from Rs 4891.65 crore in the year ago quarter.
Cambridge Tech comes into its own after debut
Software service provider Cambridge Technology Enterprises opened at Rs 48.90 on BSE, a premium of 28.68% over the IPO price of Rs 38.By 10:45 IST the stock was up 63.49% to Rs 79.95, compared with the listing price of Rs 48.90. The scrip has also hit a low of Rs 48, and a high of Rs 88.50.The counter clocked a huge volume of 41.97 lakh shares within the first 45 minutes on the bourses.
Cambridge Technology Enterprises (CTEL) issue, which closed on 9 January 2007, was oversubscribed six times. The company offered 63.15 lakh equity shares of Rs 10 each at a premium of Rs 38, to raise Rs 24 crore.
The 50% proceeds of the IPO are being allocated for acquisition. The remaining is spread between expansion of facilities, competency centres, reusable components library apart from other support infrastructure and working capital.
According to the offer document, the top-five clients in 2005 accounted for 75% of revenues and in the first quarter ended 30 June 2006, 54% of the revenues came from two customers. In addition, all its revenues accrue from clients in the US, with hardly any geographic spread.
For the 15 months ended 31 March 2006, the company clocked revenues of Rs 18.4 crore and post-tax earnings of Rs 3.84 crore.
CTEL is a software service provider focussed on the emerging area of service oriented architecture (SOA). The business opportunities linked to this are immense. SOA, a flexible and adaptive model of service delivery on an open platform, is being adopted in a big way by companies such as Oracle through its fusion strategy, SAP through NetWeaver, and IBM via Websphere. As a part of its project contours, CTEL plans to set up competency centres for Oracle, SAP and IBM.
Labels: akruti nirman, cambridge tech, icici bank
posted by SY at 1:39 PM
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