Sensex opens firm, then slips below 14,000
The BSE Sensex has slipped below the psychological 14,000 level, as a sell-off gripped index pivotals. At 10:15 IST the BSE Sensex was down 51.64 points, to 13,969.23. It had opened firm, at 14,071.27, but began declining immediately after.
The benchmark Sensex had sharply fallen 167 points on Thursday (22 February), in the last 45 minutes of trade, due to heavy unwinding of derivatives on account of expiry.
Its low for the day is 13,967.93.The total turnover on BSE amounted to Rs 443 crore.
The market-breadth was negative on BSE, with 1,003 shares declining compared to 558 that advanced.Among the 30-Sensex pack, 21 declined while the rest advanced.
Huge volumes, modest premium mark Power Finance Corp's debut
Power Finance Corporation was trading at Rs 107.15 on NSE, a premium of 26% over the IPO price of Rs 85.
The stock debuted at Rs 113. It hit a low of Rs 106, and a high of Rs 119.40. Volumes in the stock were abnormally high at 2.1 crore shares on NSE just in the first few minutes of trade.
The IPO had received a strong investor response. It was subscribed 77.24 times, amidst heavy bidding by FIIs, and was priced at the upper end of the Rs 73 - Rs 85 price band. NSE has also included the stock in the futures & options segment. The lot size of PFC in the derivatives segment is 2,400.
The current price of Rs 107.15 discounts its April-September 2006 EPS of Rs 7, by a PE multiple of 15.3. Power Finance Corporation has a large equity base of Rs 1148 crore and the face value per share is Rs 10.
Power Finance Corporation (PFC) is a leading power sector public financial institution and a non-banking financial company, providing fund and non fund-based support for the Indian power sector. It is a nodal agency to channel investments into the power sector. At present, the state, central and municipal power sector utilities, power departments, private and joint power sector utilities and power equipment manufacturers are PFC’s clients.
The object of PFC’s IPO was to augment the capital base to meet future capital requirements, arising from growth in loan and investment portfolio with the growing thrust on the development of the power sector.
Power Finance Corporation has very low sticky assets. The gross non-performing assets (NPAs) at Rs 89.67 crore by end-September 2006 form 0.23% of the total loan assets of the company. Net NPA ratio stood at just 0.16%. On the flip side, in the current rising interest-rate scenario, PFC’s profitability is under pressure. PFC’s net profit declined 12.3% in April-September 2006 to Rs 401 crore. Net interest income declined 5.5% to Rs 639 crore.
Panic in Atlanta as Sebi pulls the plug
Construction firm Atlanta plunged 10% to Rs 972.70 after Sebi asked the promoter group and associated entities/persons, not to deal in the stock for allegedly rigging its price.
As many as 2,561 shares changed hands in the counter on BSE. There were outstanding orders for 2.9 lakh shares at the 10% lower limit on BSE.
The share price of Atlanta rose abnormally after listing at Rs 170 on 25 September 2006, compared to the IPO price of Rs 150. The scrip had surged in a short while, to reach Rs 1264.20 by 11 December 2006. After correcting to Rs 935.95 on 28 December 2006, Atlanta had surged once again to Rs 1429.55 by 17 January 2007. It then slid to Rs 1080.75 by Thursday (22 February 2007).
Sebi has also directed Atlanta not to issue any equity shares, or any other instruments convertible into equity shares, in any manner, neither give effect to any alteration in its capital structure till further directions. The depositories have been asked to neither dematerialise the convertible warrants and shares issued upon conversion, nor give effect to the stock-split, till further directions.
Atlanta had raised Rs 85.72 crore by issuing convertible warrants at Rs 317.50. At its extra-ordinary general meeting (EGM) on 16 February 2007, the company approved 1:5 stock-split and further raising of funds through foreign currency convertible bonds (FCCBs).
Sebi advised the NSE and the BSE to conduct a probe into the abnormal price surge. The probe concluded that Manish Marwah/Dilip Nabera Group, Atul Shah Group and Nirmal Khotecha Group made large scrip purchases during the period.
It also said the employees, who were allotted shares, had immediately transferred the shares through off-market transactions, to persons connected with the company. The Sebi is further investigating the matter.
Atlanta, in January 2007, reported robust Q3 results. Net profit in the December 2006 quarter rose 1786.7% to Rs 36.98 crore over the year ago quarter. Net sales for the same quarter rose 138.8% to Rs 93.52 crore.
Atlanta is one of the smaller players in the construction business trying to transform itself from a pure engineering, procurement and construction contractor to an operator of BOT (Build-Operate-Transfer) projects. The company had unexecuted orders/work on hand amounting to Rs 293 crore by end-June 2006 in the road sector. Besides construction, Atlanta also has a presence in mining and real estate.
The benchmark Sensex had sharply fallen 167 points on Thursday (22 February), in the last 45 minutes of trade, due to heavy unwinding of derivatives on account of expiry.
Its low for the day is 13,967.93.The total turnover on BSE amounted to Rs 443 crore.
The market-breadth was negative on BSE, with 1,003 shares declining compared to 558 that advanced.Among the 30-Sensex pack, 21 declined while the rest advanced.
Huge volumes, modest premium mark Power Finance Corp's debut
Power Finance Corporation was trading at Rs 107.15 on NSE, a premium of 26% over the IPO price of Rs 85.
The stock debuted at Rs 113. It hit a low of Rs 106, and a high of Rs 119.40. Volumes in the stock were abnormally high at 2.1 crore shares on NSE just in the first few minutes of trade.
The IPO had received a strong investor response. It was subscribed 77.24 times, amidst heavy bidding by FIIs, and was priced at the upper end of the Rs 73 - Rs 85 price band. NSE has also included the stock in the futures & options segment. The lot size of PFC in the derivatives segment is 2,400.
The current price of Rs 107.15 discounts its April-September 2006 EPS of Rs 7, by a PE multiple of 15.3. Power Finance Corporation has a large equity base of Rs 1148 crore and the face value per share is Rs 10.
Power Finance Corporation (PFC) is a leading power sector public financial institution and a non-banking financial company, providing fund and non fund-based support for the Indian power sector. It is a nodal agency to channel investments into the power sector. At present, the state, central and municipal power sector utilities, power departments, private and joint power sector utilities and power equipment manufacturers are PFC’s clients.
The object of PFC’s IPO was to augment the capital base to meet future capital requirements, arising from growth in loan and investment portfolio with the growing thrust on the development of the power sector.
Power Finance Corporation has very low sticky assets. The gross non-performing assets (NPAs) at Rs 89.67 crore by end-September 2006 form 0.23% of the total loan assets of the company. Net NPA ratio stood at just 0.16%. On the flip side, in the current rising interest-rate scenario, PFC’s profitability is under pressure. PFC’s net profit declined 12.3% in April-September 2006 to Rs 401 crore. Net interest income declined 5.5% to Rs 639 crore.
Panic in Atlanta as Sebi pulls the plug
Construction firm Atlanta plunged 10% to Rs 972.70 after Sebi asked the promoter group and associated entities/persons, not to deal in the stock for allegedly rigging its price.
As many as 2,561 shares changed hands in the counter on BSE. There were outstanding orders for 2.9 lakh shares at the 10% lower limit on BSE.
The share price of Atlanta rose abnormally after listing at Rs 170 on 25 September 2006, compared to the IPO price of Rs 150. The scrip had surged in a short while, to reach Rs 1264.20 by 11 December 2006. After correcting to Rs 935.95 on 28 December 2006, Atlanta had surged once again to Rs 1429.55 by 17 January 2007. It then slid to Rs 1080.75 by Thursday (22 February 2007).
Sebi has also directed Atlanta not to issue any equity shares, or any other instruments convertible into equity shares, in any manner, neither give effect to any alteration in its capital structure till further directions. The depositories have been asked to neither dematerialise the convertible warrants and shares issued upon conversion, nor give effect to the stock-split, till further directions.
Atlanta had raised Rs 85.72 crore by issuing convertible warrants at Rs 317.50. At its extra-ordinary general meeting (EGM) on 16 February 2007, the company approved 1:5 stock-split and further raising of funds through foreign currency convertible bonds (FCCBs).
Sebi advised the NSE and the BSE to conduct a probe into the abnormal price surge. The probe concluded that Manish Marwah/Dilip Nabera Group, Atul Shah Group and Nirmal Khotecha Group made large scrip purchases during the period.
It also said the employees, who were allotted shares, had immediately transferred the shares through off-market transactions, to persons connected with the company. The Sebi is further investigating the matter.
Atlanta, in January 2007, reported robust Q3 results. Net profit in the December 2006 quarter rose 1786.7% to Rs 36.98 crore over the year ago quarter. Net sales for the same quarter rose 138.8% to Rs 93.52 crore.
Atlanta is one of the smaller players in the construction business trying to transform itself from a pure engineering, procurement and construction contractor to an operator of BOT (Build-Operate-Transfer) projects. The company had unexecuted orders/work on hand amounting to Rs 293 crore by end-June 2006 in the road sector. Besides construction, Atlanta also has a presence in mining and real estate.
posted by SY at 1:32 PM
0 Comments:
Post a Comment
<< Home