Sensex in a tailspin; Hindalco mauled
The market witnessed a sell-off in opening trade after data showing substantial FII sales in index-based futures on Friday and on weak Asian markets.
Hindalco Industries plunged after its large all-cash acquisition of US-based Novelis raised concerns about a short-term strain on financials.
Reliance Communications dropped after it lost bid to acquire fourth largest cellular provider Hutch Essar with Vodafone emerging as the top bidder with its $19 billion bid.
At 10:26 IST, Sensex was down 224 points at 14314.The market-breadth was quite weak. For 1,693 shares declining on BSEm 292 rose. Just 21 shares were unchanged. Losers outpaced gainers by a ratio of 5.79:1.The BSE clocked a turnover of Rs 579 crore.
Hindalco Industries was down 10.5% to Rs 155. The stock lost on high early volume of 18.6 lakh shares on BSE. Hindalco Industries and Novelis, on Sunday, signed a definitive agreement for Hindalco to acquire Novelis in an all-cash transaction, which values the US firm at approximately $6 billion, including approximately $2.4 billion of debt.Reliance Communications shed 4% to Rs 455. A strong 4.9 lakh shares changed hands in the counter on BSE.
Hindalco flops as acquisition seen strenuous
Hindalco Industries plunged 8.8% to Rs 158, after its large all-cash acquisition of US-based Novelis raised concerns about a short-term strain on financials.As many as 14.3 lakh shares changed hands in the counter on BSE.
Hindalco Industries and Novelis, on Sunday, announced they have entered into a definitive agreement for Hindalco to acquire Novelis in an all-cash transaction, which values the beleagured US firm at approximately $6 billion, including approximately $2.4 billion of debt.
Novelis is the largest flat rolled products player in the world with a 19% share of the global market. Following the transaction, Hindalco, with Novelis, will be the world's largest aluminum rolling company, one of the biggest producers of primary aluminum in Asia, and India's leading copper producer.
The deal will be financed through recourse debt of $2.8 billion. Hindalco’s treasury will contribute $450 million, while SL Iron Ore Mining, another group company will contribute $300 million as debt.
Novelis posted a net loss of $102 million during the third quarter of 2006. The company has been plagued by higher metal prices.
Fairfield Atlas on the move with open offer
Fairfield Atlas rose 3% to Rs 87, after OC Oerlikon Corporation, Pfaffikon, Switzerland, & TH Licensing Inc., USA, decided to acquire all equity shares of the company at Rs 81 per share.
The open offer will open on 30 March 2007, and will close on 18 April 2007.The counter clocked 11,019 shares on BSE.The stock rose from Rs 71.20 on 7 February to Rs 84.50 on 9 February 2007, ahead of the announcement.
Fairfield Atlas is an MNC associate company, manufacturing automotive transmission gears. TH Licensing holds 75.77% in the company as of December 2006.
Fairfield Atlas posted a net profit of Rs 0.42 crore in the December 2006 quarter, compared with Rs 2.72 crore in the December 2005 quarter. Net sales for the quarter rose to Rs 26.99 crore from Rs 31.79 crore.
Technocraft Ind mellow on debut
Technocraft Industries India opened at Rs 125 on BSE, a premium of 19.04% over the IPO price of Rs 105.By 10:45 IST the stock was up 8.23% to Rs 113.65, compared with the listing price of Rs 105, with volumes of 41.48 lakh shares. It has touched an intra-day low of Rs 106.35, and an intra-day high of Rs 130.
The company entered the capital market with an IPO to raise around Rs 87.36 crore at the upper end of the price band of Rs 95 - 105 per share. The issue was oversubscribed 10.67 times.
As many as 83,20,000 equity shares, 25.06% of the fully diluted post-issue capital, were on offer. The issue closed on 23 January 2007.
About 4.20 lakh equity shares are reserved for employees with 79 lakh shares being the net public issue.
The proceeds will primarily be used to part-finance expansion of its drum closure and yarn divisions. The company is to set up a new plant with a capacity of 9 million sets of drum closures per annum, along with a 15 Mw captive power plant to reduce power costs.
Technocraft Industries is adding 25,000 thousand spindles to increase the capacity of the yarn division to 61,104 spindles.
Promoted by the Saraf family, Technocraft Industries is a diversified company with three divisions: drum closures, pipes and yarn. It is among the largest manufacturers and exporters of drum closures with an annual production of 25 million sets exported to 60 countries in the world.
Exports accounted for 87% of the total revenues for H1-2007, with the average mix of sales to exports at 85% of the turnover. Technocraft Industries exports to all major destinations in the US, Europe and Asia; the UK and Poland account for the largest share of exports.
Technocraft Industries is entering the retail garment segment by opening 100 stores in 2007.
Technocraft Industries posted a profit of Rs 22 crore for the half-year ended 30 September 2006. Profit was driven by 13% growth in sales and flat operating expenses. The company has also introduced an automated production process, which led to a fall in the ratio of employee expenses to total cost. Going forward, profit could be driven by higher contribution from the top line.
Hindalco Industries plunged after its large all-cash acquisition of US-based Novelis raised concerns about a short-term strain on financials.
Reliance Communications dropped after it lost bid to acquire fourth largest cellular provider Hutch Essar with Vodafone emerging as the top bidder with its $19 billion bid.
At 10:26 IST, Sensex was down 224 points at 14314.The market-breadth was quite weak. For 1,693 shares declining on BSEm 292 rose. Just 21 shares were unchanged. Losers outpaced gainers by a ratio of 5.79:1.The BSE clocked a turnover of Rs 579 crore.
Hindalco Industries was down 10.5% to Rs 155. The stock lost on high early volume of 18.6 lakh shares on BSE. Hindalco Industries and Novelis, on Sunday, signed a definitive agreement for Hindalco to acquire Novelis in an all-cash transaction, which values the US firm at approximately $6 billion, including approximately $2.4 billion of debt.Reliance Communications shed 4% to Rs 455. A strong 4.9 lakh shares changed hands in the counter on BSE.
Hindalco flops as acquisition seen strenuous
Hindalco Industries plunged 8.8% to Rs 158, after its large all-cash acquisition of US-based Novelis raised concerns about a short-term strain on financials.As many as 14.3 lakh shares changed hands in the counter on BSE.
Hindalco Industries and Novelis, on Sunday, announced they have entered into a definitive agreement for Hindalco to acquire Novelis in an all-cash transaction, which values the beleagured US firm at approximately $6 billion, including approximately $2.4 billion of debt.
Novelis is the largest flat rolled products player in the world with a 19% share of the global market. Following the transaction, Hindalco, with Novelis, will be the world's largest aluminum rolling company, one of the biggest producers of primary aluminum in Asia, and India's leading copper producer.
The deal will be financed through recourse debt of $2.8 billion. Hindalco’s treasury will contribute $450 million, while SL Iron Ore Mining, another group company will contribute $300 million as debt.
Novelis posted a net loss of $102 million during the third quarter of 2006. The company has been plagued by higher metal prices.
Fairfield Atlas on the move with open offer
Fairfield Atlas rose 3% to Rs 87, after OC Oerlikon Corporation, Pfaffikon, Switzerland, & TH Licensing Inc., USA, decided to acquire all equity shares of the company at Rs 81 per share.
The open offer will open on 30 March 2007, and will close on 18 April 2007.The counter clocked 11,019 shares on BSE.The stock rose from Rs 71.20 on 7 February to Rs 84.50 on 9 February 2007, ahead of the announcement.
Fairfield Atlas is an MNC associate company, manufacturing automotive transmission gears. TH Licensing holds 75.77% in the company as of December 2006.
Fairfield Atlas posted a net profit of Rs 0.42 crore in the December 2006 quarter, compared with Rs 2.72 crore in the December 2005 quarter. Net sales for the quarter rose to Rs 26.99 crore from Rs 31.79 crore.
Technocraft Ind mellow on debut
Technocraft Industries India opened at Rs 125 on BSE, a premium of 19.04% over the IPO price of Rs 105.By 10:45 IST the stock was up 8.23% to Rs 113.65, compared with the listing price of Rs 105, with volumes of 41.48 lakh shares. It has touched an intra-day low of Rs 106.35, and an intra-day high of Rs 130.
The company entered the capital market with an IPO to raise around Rs 87.36 crore at the upper end of the price band of Rs 95 - 105 per share. The issue was oversubscribed 10.67 times.
As many as 83,20,000 equity shares, 25.06% of the fully diluted post-issue capital, were on offer. The issue closed on 23 January 2007.
About 4.20 lakh equity shares are reserved for employees with 79 lakh shares being the net public issue.
The proceeds will primarily be used to part-finance expansion of its drum closure and yarn divisions. The company is to set up a new plant with a capacity of 9 million sets of drum closures per annum, along with a 15 Mw captive power plant to reduce power costs.
Technocraft Industries is adding 25,000 thousand spindles to increase the capacity of the yarn division to 61,104 spindles.
Promoted by the Saraf family, Technocraft Industries is a diversified company with three divisions: drum closures, pipes and yarn. It is among the largest manufacturers and exporters of drum closures with an annual production of 25 million sets exported to 60 countries in the world.
Exports accounted for 87% of the total revenues for H1-2007, with the average mix of sales to exports at 85% of the turnover. Technocraft Industries exports to all major destinations in the US, Europe and Asia; the UK and Poland account for the largest share of exports.
Technocraft Industries is entering the retail garment segment by opening 100 stores in 2007.
Technocraft Industries posted a profit of Rs 22 crore for the half-year ended 30 September 2006. Profit was driven by 13% growth in sales and flat operating expenses. The company has also introduced an automated production process, which led to a fall in the ratio of employee expenses to total cost. Going forward, profit could be driven by higher contribution from the top line.
posted by SY at 12:55 PM
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