Sensex still weak
Selling continued unabated and the Sensex stayed weak as a result. The BSE benchmark also turned volatile, swinging sharply either ways. At 14:31 IST the Sensex was down 272.82 points (1.89%), at 14,263.87, recovering some lost ground after plunging to a low of 14,182.34 on value-buying.
As the market tanked, the market-breadth, which indicates the overall health of the market, did not look good, as a host of small-cap and mid-cap stocks succumbed to selling. There were close to 6.5 losers for every gainer on BSE. For 2,253 shares declining on BSE, only 357 rose. Just 28 shares were unchanged.
The BSE Sensex began on a highly bearish note, as selling pressure spilled to this week. The horror show started on Friday, when the benchmark Sensex tumbled close to 113 points, as a lot of stop losses were triggered due to highly leveraged positions in the derivatives market. Its high for the day was 14,529.28.The BSE clocked a turnover of Rs 3266 crore.Among the 30-Sensex pack, only 4 managed to stay afloat.
Falcon Tyres edges ahead
Falcon Tyres rose 1.82% to Rs 153.95, after the board approved a merger of Monotona Tyres with the company.The board of Falcon Tyres also appointed experts to submit a valuation report and will proceed accordingly.As many as 5,355 shares were traded on the BSE.
The scrip has been bullish since mid-June 2006 except for a minor hiccup between early-September and early-November 2006. The scrip has moved up from Rs 64 on 14 June 2006 to Rs 117.05 by 8 September 2006, only to slip to Rs 98.10 by 3 November 2006. Here, the scrip surged amid volatility to Rs 151.20 by 9 February 2007.
At the current market price of Rs 153.95, Falcon Tyres trades 29.95 times its Q3 December 2006 annualized EPS of Rs 5.14.
Recently, the Pawan Ruia group made an open offer for Falcon Tyres following the indirect acquisition from the Jumbo group in December 2005. The group had used a special purpose vehicle incorporated in Singapore, Wealth Sea Pte, for taking over Dil Rim & Wheels (DRW). DRW owns 69% stake in Falcon Tyres. The Ruia group announced an open offer for 20% in Falcon Tyres at Rs 151 per share, aggregating to Rs 18 crore. The group holds 70% stake in Falcon Tyres.
The open offer opens on 24 March 2007 and closes on 12 April 2007.
Falcon makes a range of tyres for two and three wheelers and passenger cars, which it markets under the 'Dunlop' brand. The Ruia Group, which has interests in sugar, textiles and engineering, said it would start production at Dunlop's factories in West Bengal and Tamil Nadu, within the next six-to-nine months.
Falcon Tyres posted a net profit growth of 73.8% to Rs 0.73 crore (Rs 0.42 crore) in Q3 December 2006. Net sales for the quarter rose 27.30% to Rs 72.01 crore from Rs 56.56 crore.
Wind goes out of Suzlon Energy's sails
Suzlon Energy was hit by concerns about a short-term strain on its financials due to plans for a big acquisition overseas.The stock was down nearly 13% to Rs 108 following reports that it was pitted against France's Areva for wresting control of Germany's REpower. Suzlon has bid €126 per share, topping the Areva bid by €21 per share, representing an equity value of €1.02 billion on an aggregate basis. As many as 4.5 lakh shares changed hands in the counter on BSE.
Suzlon scrip plunged 11.2% in two trading sessions to Rs 1142.35 on 31 January 2007 from Rs 1287.10 on 25 January 2007, hit by disappointing Q3 results, which were announced on 29 January 2007. Suzlon Energy's scrip later recovered to Rs 1245.15 by 9 February 2007.
Suzlon Energy is bidding in consortium with Martifer, Portugal, a steel construction company operating across Europe, and the second largest shareholder in REpower holding 25.4% stake. Suzlon and Martifer will establish a special purpose vehicle to give effect to the bid in which Suzlon will own 75% and Martifer 25%.
REpower Systems was founded in 2001 and operates in the wind energy sector, specializing in high output turbine technology particularly suited to offshore turbines. It is a leader in 5 Mw turbines.
Suzlon, if successful in bidding, plans to fund the acquisition through a mix of debt and internal accruals. Suzlon Energy is Asia's largest wind power company and the fifth largest in the world.
Areva is currently the single largest shareholder in REpower with a 29.9% stake acquired in 2005. At the time, Areva cited the complementary relationship between nuclear and wind energy as a factor for its investment.
This will be Suzlon's second significant cross-border acquisition. In March 2006, Suzlon acquired Hansen Transmissions, Belgium, a wind energy and industrial gearbox manufacturer, for $565 million in an all cash deal.
On a consolidated basis, Suzlon Energy reported 29% growth in the December 2006 quarter to Rs 174.39 crore, on 117% growth in sales to Rs 1913.88 crore.
Suzlon has a healthy order-book. The consolidated order-book of the company, as on December 2006, was Rs 7716.23 crore. Domestic orders amount to Rs 1544.31 crore, and international orders are worth Rs 6171.93 crore.
As the market tanked, the market-breadth, which indicates the overall health of the market, did not look good, as a host of small-cap and mid-cap stocks succumbed to selling. There were close to 6.5 losers for every gainer on BSE. For 2,253 shares declining on BSE, only 357 rose. Just 28 shares were unchanged.
The BSE Sensex began on a highly bearish note, as selling pressure spilled to this week. The horror show started on Friday, when the benchmark Sensex tumbled close to 113 points, as a lot of stop losses were triggered due to highly leveraged positions in the derivatives market. Its high for the day was 14,529.28.The BSE clocked a turnover of Rs 3266 crore.Among the 30-Sensex pack, only 4 managed to stay afloat.
Falcon Tyres edges ahead
Falcon Tyres rose 1.82% to Rs 153.95, after the board approved a merger of Monotona Tyres with the company.The board of Falcon Tyres also appointed experts to submit a valuation report and will proceed accordingly.As many as 5,355 shares were traded on the BSE.
The scrip has been bullish since mid-June 2006 except for a minor hiccup between early-September and early-November 2006. The scrip has moved up from Rs 64 on 14 June 2006 to Rs 117.05 by 8 September 2006, only to slip to Rs 98.10 by 3 November 2006. Here, the scrip surged amid volatility to Rs 151.20 by 9 February 2007.
At the current market price of Rs 153.95, Falcon Tyres trades 29.95 times its Q3 December 2006 annualized EPS of Rs 5.14.
Recently, the Pawan Ruia group made an open offer for Falcon Tyres following the indirect acquisition from the Jumbo group in December 2005. The group had used a special purpose vehicle incorporated in Singapore, Wealth Sea Pte, for taking over Dil Rim & Wheels (DRW). DRW owns 69% stake in Falcon Tyres. The Ruia group announced an open offer for 20% in Falcon Tyres at Rs 151 per share, aggregating to Rs 18 crore. The group holds 70% stake in Falcon Tyres.
The open offer opens on 24 March 2007 and closes on 12 April 2007.
Falcon makes a range of tyres for two and three wheelers and passenger cars, which it markets under the 'Dunlop' brand. The Ruia Group, which has interests in sugar, textiles and engineering, said it would start production at Dunlop's factories in West Bengal and Tamil Nadu, within the next six-to-nine months.
Falcon Tyres posted a net profit growth of 73.8% to Rs 0.73 crore (Rs 0.42 crore) in Q3 December 2006. Net sales for the quarter rose 27.30% to Rs 72.01 crore from Rs 56.56 crore.
Wind goes out of Suzlon Energy's sails
Suzlon Energy was hit by concerns about a short-term strain on its financials due to plans for a big acquisition overseas.The stock was down nearly 13% to Rs 108 following reports that it was pitted against France's Areva for wresting control of Germany's REpower. Suzlon has bid €126 per share, topping the Areva bid by €21 per share, representing an equity value of €1.02 billion on an aggregate basis. As many as 4.5 lakh shares changed hands in the counter on BSE.
Suzlon scrip plunged 11.2% in two trading sessions to Rs 1142.35 on 31 January 2007 from Rs 1287.10 on 25 January 2007, hit by disappointing Q3 results, which were announced on 29 January 2007. Suzlon Energy's scrip later recovered to Rs 1245.15 by 9 February 2007.
Suzlon Energy is bidding in consortium with Martifer, Portugal, a steel construction company operating across Europe, and the second largest shareholder in REpower holding 25.4% stake. Suzlon and Martifer will establish a special purpose vehicle to give effect to the bid in which Suzlon will own 75% and Martifer 25%.
REpower Systems was founded in 2001 and operates in the wind energy sector, specializing in high output turbine technology particularly suited to offshore turbines. It is a leader in 5 Mw turbines.
Suzlon, if successful in bidding, plans to fund the acquisition through a mix of debt and internal accruals. Suzlon Energy is Asia's largest wind power company and the fifth largest in the world.
Areva is currently the single largest shareholder in REpower with a 29.9% stake acquired in 2005. At the time, Areva cited the complementary relationship between nuclear and wind energy as a factor for its investment.
This will be Suzlon's second significant cross-border acquisition. In March 2006, Suzlon acquired Hansen Transmissions, Belgium, a wind energy and industrial gearbox manufacturer, for $565 million in an all cash deal.
On a consolidated basis, Suzlon Energy reported 29% growth in the December 2006 quarter to Rs 174.39 crore, on 117% growth in sales to Rs 1913.88 crore.
Suzlon has a healthy order-book. The consolidated order-book of the company, as on December 2006, was Rs 7716.23 crore. Domestic orders amount to Rs 1544.31 crore, and international orders are worth Rs 6171.93 crore.
posted by SY at 4:19 PM
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