Tremendous volatility in opening trade
A bout of early volatility gripped the bourses and the Sensex slipped into the red soon after a firm opening. However, the benchmark index once again recovered from the lower level, to move into the green.Banking, cement and auto pivotals had nudged higher. RIL slipped after the company’s board approved a large issue of equity warrants to promoters.
At 10:15 IST the Sensex was up 41 points, at 13,673. It had surged 90.87 points in opening trade, to 13,723.40, but had soon reached a low of 13,533.81 at 10:00 IST, a fall of 98.72 points for the day. The benchmark index later came off the lower level.
The market-breadth, which was positive at the opening, had turned negative. Against 827 shares that declined on BSE, 795 rose. Just 31 shares were unchanged. Losers outpaced gainers by a ratio of 1.04:1.The BSE clocked a turnover of Rs 432 crore.
C & C Constructions trades at discount after debut
C & C Constructions was trading at Rs 244.70, a discount compared to the issue price of Rs 291 per share.At the current market price of Rs 244.70, C & C Constructions trades at 14.48 times its EPS of Rs 16.9 for fiscal ended June 2006.
Today, the stock debuted at Rs 350, a premium of 20.27% over its issue price (Rs 291 per share). The stock touched a high of Rs 350, and a low of Rs 244.05.The C&C Constructions stock clocked high volumes of 7.04 lakh shares in early trade.
The Initial Public Offering (IPO) of C & C Constructions received subscription for 20.25 times. Out of the total issue, 25.61 lakh shares were reserved for Qualified Institutional Bidders (QIBs), 4.26 lakh shares were reserved for Non Institutional Investors and 12.80 lakh shares were reserved for subscription by Retail Individual Investors (RIIs).
The QIBs portion of the issue received subscription for 29.9577 times (76.74 lakh shares), Non Institutional Investors portion for 7.9273 times (33.84 lakh shares) and Retail Individual Investors protion for 4.9559 times (63.47 lakh shares).
The objective behind the public issue was to finance the build, operate and transfer (BOT) projects, investment in capital equipment and working capital requirements of the company. The issue opened on 5 February 2007, and closed on 9 February 2007. The price band for the issue was Rs 270 - Rs 291, and the issue price was at the higher end of the price band.
C & C Constructions is an infrastructure project development company that provides engineering, procurement and construction services for infrastructure projects in India and Afghanistan. Currently, all projects under execution by the company are in the road segment, and are in joint venture with B Seenaiah and Company (Projects) (BSCPL), Hyderabad.
C & C Constructions has recently been awarded a BOT road project. It was also recently adjudged as an L1 bidder for the project of supply of 132 Kv transmission Line Tower Package (including supply of conductors and insulators) associated with Bihar Sub Transmission System, Phase-II Project of Bihar State Electricity Board under Vender Development Program, initiated by the Power Grid Corporation Of India.
C & C Constructions reported total sales of Rs 211.73 crore for the year ended June 2006 and a net profit of Rs 30.90 crore.C & C Constructions’ post-issue equity share capital is Rs 18.26 crore, while the post-issue promoter stake is 68.98%.
Gujarat Gas Company firms up on robust Q4 outcome
Gujarat Gas Company surged 1.38% to Rs 1319, after the company posted a net profit growth of 67.10% for Q4 ended December 2006.A very low volume of 422 shares were traded on the BSE.The scrip had earlier surged from Rs 1151.55 on 10 November 2006, to Rs 1348.75 by 2 February 2007, only to slip to Rs 1301.05 by 23 February 2007.
At the current market price of Rs 1319, Gujarat Gas Company trades at 92.82 times its Q4 December 2006 annualized EPS of Rs 14.21.
Gujarat Gas Company has posted a net profit growth of 67.10% to Rs 18.23 crore (Rs 10.91 crore) in Q4 December 2006. Net sales for the December 2006 quarter rose 46.60% to Rs 234.50 crore from Rs 159.97 crore in the year ago quarter.
Further, the board of Gujarat Gas Company had on Friday approved splitting each of the company’s shares from face value of Rs 10 into five shares of Rs 2 each.
In January 2007, Gujarat Gas Company entered into an agreement with Krishak Bharti Co-operative (Kribhco) in Hazira, Gujarat, for the sale of 3.50 lakh standard cubic meters of gas per day for the period up to 31 March 2007.
In December 2006, Gujarat Gas Company had approved entering into a specific gas sales contract with the Panna, Mukta and Tapti joint venture (PMT JV) for the purchase of 0.7 million standard cubic meters of gas per day on a firm basis. This quantity of gas was being supplied by the PMT JV to the company on an uncommitted spot basis, and is now expected to continue on a committed basis till 31 March 2008.
In September 2006, Gujarat Gas entered into a long-term gas purchase agreement with BG Exploration and Production India (BGEPIL). BGEPIL will supply 1.65 million standard cubic meters per day as part of this agreement.
Gujarat Gas Company (GGCL) is a 65.12% subsidiary of MNC giant, BG Group. GCCL is India’s largest gas distribution company with proven expertise in distributing gas to the entire range of customers, bulk industrial, retail industrial, commercial, domestic and CNG. GGCL distributes more than 25 lakh standard cubic meters of gas per day (scmd) to approximately 1,70,000 piped gas customers, and around 20,000 CNG customers through more than 2,000 kms of pipeline network.
Equity dilution worries weigh on RIL
Reliance Industries declined 1.76% to Rs 1388, on worries of equity dilution since the company has approved 12 crore preferential warrants for promoters.The Reliance Industries (RIL) stock, however, touched an all-time high of Rs 1445, in opening trade. Its low for the day is Rs 1381.75.
RIL had a huge weightage of 11.36% in the coveted 30-shares BSE Sensex on 23 February 2007, and was the second largest company in terms of market cap after PSU oil exploration major ONGC. The daily weight assigned to a particular stock changes, based on changes in share price.
As many as 5.59 lakh shares have changed hands in the RIL counter on BSE.
The RIL stock has been on a roll in the past few months. It has slowly and steadily advanced on sustained buying. From Rs 1273.30 on 10 January, it has advanced to Rs 1412.80 by 23 February 2007.
On Saturday (24 February 2007), RIL’s board approved a preferential issue of 12 crore warrants, exercisable into an equal number of equity shares of Rs 10 each, to promoters as per SEBI guidelines for preferential issues. RIL will raise over Rs 16,750 crore from this issue.
An amount equivalent to 10% of the price will be paid on allotment of warrants, and the remaining 90% at the time of subscription to equity shares on exercising the rights attached to the warrants within 18 months. On exercising the rights, the paid-up capital of RIL will increase from Rs 1393 crore to Rs 1513 crore.
The total promoter holding will rise to 54.8% after conversion of warrants. As of December 2006, the promoter holding was 50%. “This is a clear signal to the fact that the promoter is very confident about the future of the company. The portfolio activities of RIL are centered around lots of opportunities, be it petroleum, retail or special economic zones,” said an analyst.
RIL also unveiled a plan for an integrated cracker and petrochemicals complex, with a total capacity of 2 million metric tonne per annum in the special economic zone (SEZ) at Jamnagar. This cracker will use refinery off gases and other byproducts as feedstock to manufacture ethylene, propylene and its downstream commodity and specialty derivatives.
The proposed facility will be built at a capital cost of $ 3 billion, and is expected to go on stream by 2010-11, an RIL statement said. This unique integration with the refinery will place the proposed cracker complex at par with the most efficient producers of olefins, and derivatives in the world, including those in the Middle East. It will also enable RIL to achieve one of the most competitive cost positions, the statement said.
RIL’s board also reiterated its earlier decision to raise $ 2 billion to finance the capital expenditure plan for oil and gas business through external commercial borrowings (ECBs).
Reliance has huge capex plans for its retail and petroleum businesses. The company plans to rollout about 3,500 retail outlets in the coming months. It is planning to invest about Rs 25,000 crore in its retail business alone, in the next five years. Reliance Retail is spending this amount to set up stores and is hoping a rapid rollout will help it gain an edge over local rivals such as Pantaloon Retail and overseas retailers like Wal-Mart Stores and Carrefour SA, if India permits them to open store chains.
Reliance Retail is targeting sales of Rs 1 trillion by 2011 through a nationwide chain that will sell goods ranging from groceries to electronics. It hopes to tap the organized, or store-chain, retail market that Morgan Stanley estimates will surge 15-fold to $60 billion by 2015.
Also, there are expectations that global oil major, Chevron Corporation, may assist RIL in developing an exploration block in the oil-gas rich Krishna-Godavari (KG) basin. David J O' Reilly, chief executive officer of Chevron is in India on a four-day visit starting from Tuesday along with Jeet Singh Bindra, president of Chevron's global refining business. Mr Bindra is Chevron's nominee on the RPL's board, where it has 5% stake with an option to increase it up to 29%.
Recently, RIL found another new natural gas reserve in the D6 block (KG basin). According to its partner Niko Resources; “The AA-1 well is located in the new 3D seismic area and demonstrates the continued high prospectivity of the block, as drilling progresses into the southern areas of the block.” RIL has, to date, made over a dozen gas discoveries and two oil finds on the block KG-DWN-98/3, also known as D6. The AA-1 well is located in the new 3D seismic area, south-east of the previous gas finds.
Reliance Industries (RIL) reported 57.6% surge in net profit in the December 2006 quarter to Rs 2799 crore from Rs 1776 crore in the year ago quarter. Net sales for the December 2006 quarter rose 45.7%, to Rs 26472 crore from Rs 18168 crore in the year ago quarter.
RIL’s gross refining margin was $11.7 a barrel in the December 2006 quarter, much higher than the Singapore refining margins.
At 10:15 IST the Sensex was up 41 points, at 13,673. It had surged 90.87 points in opening trade, to 13,723.40, but had soon reached a low of 13,533.81 at 10:00 IST, a fall of 98.72 points for the day. The benchmark index later came off the lower level.
The market-breadth, which was positive at the opening, had turned negative. Against 827 shares that declined on BSE, 795 rose. Just 31 shares were unchanged. Losers outpaced gainers by a ratio of 1.04:1.The BSE clocked a turnover of Rs 432 crore.
C & C Constructions trades at discount after debut
C & C Constructions was trading at Rs 244.70, a discount compared to the issue price of Rs 291 per share.At the current market price of Rs 244.70, C & C Constructions trades at 14.48 times its EPS of Rs 16.9 for fiscal ended June 2006.
Today, the stock debuted at Rs 350, a premium of 20.27% over its issue price (Rs 291 per share). The stock touched a high of Rs 350, and a low of Rs 244.05.The C&C Constructions stock clocked high volumes of 7.04 lakh shares in early trade.
The Initial Public Offering (IPO) of C & C Constructions received subscription for 20.25 times. Out of the total issue, 25.61 lakh shares were reserved for Qualified Institutional Bidders (QIBs), 4.26 lakh shares were reserved for Non Institutional Investors and 12.80 lakh shares were reserved for subscription by Retail Individual Investors (RIIs).
The QIBs portion of the issue received subscription for 29.9577 times (76.74 lakh shares), Non Institutional Investors portion for 7.9273 times (33.84 lakh shares) and Retail Individual Investors protion for 4.9559 times (63.47 lakh shares).
The objective behind the public issue was to finance the build, operate and transfer (BOT) projects, investment in capital equipment and working capital requirements of the company. The issue opened on 5 February 2007, and closed on 9 February 2007. The price band for the issue was Rs 270 - Rs 291, and the issue price was at the higher end of the price band.
C & C Constructions is an infrastructure project development company that provides engineering, procurement and construction services for infrastructure projects in India and Afghanistan. Currently, all projects under execution by the company are in the road segment, and are in joint venture with B Seenaiah and Company (Projects) (BSCPL), Hyderabad.
C & C Constructions has recently been awarded a BOT road project. It was also recently adjudged as an L1 bidder for the project of supply of 132 Kv transmission Line Tower Package (including supply of conductors and insulators) associated with Bihar Sub Transmission System, Phase-II Project of Bihar State Electricity Board under Vender Development Program, initiated by the Power Grid Corporation Of India.
C & C Constructions reported total sales of Rs 211.73 crore for the year ended June 2006 and a net profit of Rs 30.90 crore.C & C Constructions’ post-issue equity share capital is Rs 18.26 crore, while the post-issue promoter stake is 68.98%.
Gujarat Gas Company firms up on robust Q4 outcome
Gujarat Gas Company surged 1.38% to Rs 1319, after the company posted a net profit growth of 67.10% for Q4 ended December 2006.A very low volume of 422 shares were traded on the BSE.The scrip had earlier surged from Rs 1151.55 on 10 November 2006, to Rs 1348.75 by 2 February 2007, only to slip to Rs 1301.05 by 23 February 2007.
At the current market price of Rs 1319, Gujarat Gas Company trades at 92.82 times its Q4 December 2006 annualized EPS of Rs 14.21.
Gujarat Gas Company has posted a net profit growth of 67.10% to Rs 18.23 crore (Rs 10.91 crore) in Q4 December 2006. Net sales for the December 2006 quarter rose 46.60% to Rs 234.50 crore from Rs 159.97 crore in the year ago quarter.
Further, the board of Gujarat Gas Company had on Friday approved splitting each of the company’s shares from face value of Rs 10 into five shares of Rs 2 each.
In January 2007, Gujarat Gas Company entered into an agreement with Krishak Bharti Co-operative (Kribhco) in Hazira, Gujarat, for the sale of 3.50 lakh standard cubic meters of gas per day for the period up to 31 March 2007.
In December 2006, Gujarat Gas Company had approved entering into a specific gas sales contract with the Panna, Mukta and Tapti joint venture (PMT JV) for the purchase of 0.7 million standard cubic meters of gas per day on a firm basis. This quantity of gas was being supplied by the PMT JV to the company on an uncommitted spot basis, and is now expected to continue on a committed basis till 31 March 2008.
In September 2006, Gujarat Gas entered into a long-term gas purchase agreement with BG Exploration and Production India (BGEPIL). BGEPIL will supply 1.65 million standard cubic meters per day as part of this agreement.
Gujarat Gas Company (GGCL) is a 65.12% subsidiary of MNC giant, BG Group. GCCL is India’s largest gas distribution company with proven expertise in distributing gas to the entire range of customers, bulk industrial, retail industrial, commercial, domestic and CNG. GGCL distributes more than 25 lakh standard cubic meters of gas per day (scmd) to approximately 1,70,000 piped gas customers, and around 20,000 CNG customers through more than 2,000 kms of pipeline network.
Equity dilution worries weigh on RIL
Reliance Industries declined 1.76% to Rs 1388, on worries of equity dilution since the company has approved 12 crore preferential warrants for promoters.The Reliance Industries (RIL) stock, however, touched an all-time high of Rs 1445, in opening trade. Its low for the day is Rs 1381.75.
RIL had a huge weightage of 11.36% in the coveted 30-shares BSE Sensex on 23 February 2007, and was the second largest company in terms of market cap after PSU oil exploration major ONGC. The daily weight assigned to a particular stock changes, based on changes in share price.
As many as 5.59 lakh shares have changed hands in the RIL counter on BSE.
The RIL stock has been on a roll in the past few months. It has slowly and steadily advanced on sustained buying. From Rs 1273.30 on 10 January, it has advanced to Rs 1412.80 by 23 February 2007.
On Saturday (24 February 2007), RIL’s board approved a preferential issue of 12 crore warrants, exercisable into an equal number of equity shares of Rs 10 each, to promoters as per SEBI guidelines for preferential issues. RIL will raise over Rs 16,750 crore from this issue.
An amount equivalent to 10% of the price will be paid on allotment of warrants, and the remaining 90% at the time of subscription to equity shares on exercising the rights attached to the warrants within 18 months. On exercising the rights, the paid-up capital of RIL will increase from Rs 1393 crore to Rs 1513 crore.
The total promoter holding will rise to 54.8% after conversion of warrants. As of December 2006, the promoter holding was 50%. “This is a clear signal to the fact that the promoter is very confident about the future of the company. The portfolio activities of RIL are centered around lots of opportunities, be it petroleum, retail or special economic zones,” said an analyst.
RIL also unveiled a plan for an integrated cracker and petrochemicals complex, with a total capacity of 2 million metric tonne per annum in the special economic zone (SEZ) at Jamnagar. This cracker will use refinery off gases and other byproducts as feedstock to manufacture ethylene, propylene and its downstream commodity and specialty derivatives.
The proposed facility will be built at a capital cost of $ 3 billion, and is expected to go on stream by 2010-11, an RIL statement said. This unique integration with the refinery will place the proposed cracker complex at par with the most efficient producers of olefins, and derivatives in the world, including those in the Middle East. It will also enable RIL to achieve one of the most competitive cost positions, the statement said.
RIL’s board also reiterated its earlier decision to raise $ 2 billion to finance the capital expenditure plan for oil and gas business through external commercial borrowings (ECBs).
Reliance has huge capex plans for its retail and petroleum businesses. The company plans to rollout about 3,500 retail outlets in the coming months. It is planning to invest about Rs 25,000 crore in its retail business alone, in the next five years. Reliance Retail is spending this amount to set up stores and is hoping a rapid rollout will help it gain an edge over local rivals such as Pantaloon Retail and overseas retailers like Wal-Mart Stores and Carrefour SA, if India permits them to open store chains.
Reliance Retail is targeting sales of Rs 1 trillion by 2011 through a nationwide chain that will sell goods ranging from groceries to electronics. It hopes to tap the organized, or store-chain, retail market that Morgan Stanley estimates will surge 15-fold to $60 billion by 2015.
Also, there are expectations that global oil major, Chevron Corporation, may assist RIL in developing an exploration block in the oil-gas rich Krishna-Godavari (KG) basin. David J O' Reilly, chief executive officer of Chevron is in India on a four-day visit starting from Tuesday along with Jeet Singh Bindra, president of Chevron's global refining business. Mr Bindra is Chevron's nominee on the RPL's board, where it has 5% stake with an option to increase it up to 29%.
Recently, RIL found another new natural gas reserve in the D6 block (KG basin). According to its partner Niko Resources; “The AA-1 well is located in the new 3D seismic area and demonstrates the continued high prospectivity of the block, as drilling progresses into the southern areas of the block.” RIL has, to date, made over a dozen gas discoveries and two oil finds on the block KG-DWN-98/3, also known as D6. The AA-1 well is located in the new 3D seismic area, south-east of the previous gas finds.
Reliance Industries (RIL) reported 57.6% surge in net profit in the December 2006 quarter to Rs 2799 crore from Rs 1776 crore in the year ago quarter. Net sales for the December 2006 quarter rose 45.7%, to Rs 26472 crore from Rs 18168 crore in the year ago quarter.
RIL’s gross refining margin was $11.7 a barrel in the December 2006 quarter, much higher than the Singapore refining margins.
Labels: C and C Constructions, Gujarat Gas Company, Reliance Industries
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