Volatility strikes early
The market opened firm amid initial volatility. At 10:10 IST the Sensex was up 29 points, at 14,431. It had risen as many as 63.86 points, to 14,466.76 soon after commencement of trading, but shortly slipped into the red, to 14,390.87. At this level, the benchmark Sensex had lost 12.03 points for the day.
The market-breadth was positive. Against 877 shares rising on BSE, 626 declined. Just 50 shares were unchanged. Gainers outpaced losers by a ratio of 1.4:1.The BSE clocked a turnover of Rs 438 crore.
State Bank of India (SBI) gained 1% to Rs 1143, after the state-run bank said it will raise its benchmark prime lending rate by 75 basis points to 12.25% from Tuesday (20 February 2007). This is the second time that SBI, which owns nearly a quarter of banking sector assets in India, has raised its benchmark lending rate in two months. It last lifted the rate to 11.5% in late December.
Saregama India jumps on restructuring
Saregama India rose 3.02% to Rs 236.90, after the board approved the amalgamation of Saregama Films with the company.A mere 392 shares were traded on the BSE.
The scrip has been volatile in the last few months. From Rs 184.35 on 12 December 2006, the Saregama India scrip surged amid volatility to Rs 248.85 by 19 January 2007, only to slip to Rs 202.80 by 14 February. At this level, the stock rose to Rs 229.95 by 19 February 2007.
At the current market price of Rs 236.90, Saregama India trades at 23.50 times its Q3 December 2006 annualized EPS of Rs 10.08.
Saregama India's board of directors has approved the amalgamation of Saregama Films (SFL) with the company from 31 March 2007.SEL is a wholly-owned subsidiary and is engaged in production and distribution of films as also television software in regional languages.Further, Saregama India will begin work on four - five movies this year. The budgets for the movies range from Rs 4 crore - Rs 12 crore each.
In December 2006, Saregama India had been in talks with leading cellphone operators such as Airtel and Hutch for offering musical tracks, which could be used as ring-tones, ring-back tones, background music and SMSes. It is also in similar discussions with cellphone manufacturers such as Nokia and Motorola.
Saregama, popular for its HMV brand, has more than 3 lakh musical tracks, of which 1.70 lakh have already been digitised. It has musical tracks in as many as 23 languages, and across every genre of music with regional and national relevance.
Saregama holds the home video distribution rights of five leading Hollywood producers, including Warner Brothers.
Saregama India has posted a net profit growth of 43.40% to Rs 3.70 crore (Rs 2.58 crore) in Q3 December 2006. Net sales for the same quarter rose 4.90% to Rs 32.55 crore from Rs 31.03 crore.
Tata Tea gains on plan to dilute stake in north India plantations
Tata Tea rose 0.91% to Rs 679, on deciding to offload 80% stake in its North India Plantation Operations to a group of investors and employees.
Amalgamated Plantations, the company to which the Tatas will transfer its North India Plantation Operations (NIPO) business, will take over the plantation operations from 1 April 2007. Tata Tea has 20 plantations in Assam and five in Dooars (West Bengal), spread over 24,000 hectares, for an enterprise value of Rs 360 crore.
While Tata Tea will hold 20% equity in the resulting company, International Finance Corporation, a subsidiary of the World Bank, and IL&FS will hold 20% each. In addition to the three principal shareholders, Globally Managed Services (GMS), which is engaged in field work from non-tea operations, will also hold a minority stake, along with plantation employees.
This move is in line with Tata Tea’s vision of focusing on the non-plantation business, and becoming a strong player in the branded beverages business. Two years back, the company had carried out a similar exercise for its south India plantations, which were divested to Kanan Devan Hills Plantations on similar lines.
As per an official of Tata Tea, the new company will pursue crop diversification and foray into agri-products. 'The intent is to ensure that the tea operations achieve a new level of stable profitability because of new streams of income,' he added.
Significantly, the Assam Government has permitted using 5% of the total land holdings in the state under tea plantations for multi-crop cultivation.
Tata Tea is awaiting a similar approval from the West Bengal Government. It intends to use the 5% land holdings for fishery, horticulture and floriculture projects, apart from growing vegetables and spices. Later, the company may also take up hatchery and other projects.
The counter clocked a thin volume of 3,091 shares on BSE.Tata Tea had declined in the last few days. From Rs 725.35 on 1 February, the stock declined to Rs 672.85 by 19 February 2007.
Tata Tea reported 50.90% rise in net profit during Q3 December 2006 to Rs 94.20 crore compared to Rs 62.41 crore in Q3 December 2005. Net sales for the same quarter rose 4.40% to Rs 290.77 crore (Rs 278.47 crore).
Other income jumped to Rs 71.49 crore, 185.70% more than in the year ago period. Tata Tea collected Rs 63.54 from the sale of investments, and the rest from other items.
Tata Tea reported a surge in consolidated net profit in the December 2006 quarter to Rs 117.19 crore (Rs 60.08 crore). Total income during the quarter went up to Rs 1119.32 crore (Rs 812.02 crore).
During the December quarter, Tata Tea issued 28,10,000 equity shares at Rs 777 per share and an equal number of warrants, to Tata Sons on a preferential basis. The warrants are convertible into equity shares, on a date after 1 April 2007 but before 31 March 2008.
Tata Tea has also made an investment of Rs 763.39 crore in its subsidiary, Tata Tea GB, UK, to part finance a 25% stake in Energy Brands Inc, USA (EBI). This investment in the subsidiary was financed by bridge loans, the interest on which amounts to Rs 12.41 crore. These loans will be repaid from the proceeds of the preferential issue to Tata Sons, the sale of investments and plantation restructuring.
Tata Tea bought the UK-based Tetley for $ 407 million in 2000, and its subsidiary, Tata Coffee, purchased US-based Eight o’Clock Coffee for $ 220 million in June 2006.
In May 2006, Tata Tea, UK, acquired Jemca, a tea company in the Czech Republic, from Alima Znackova Potravina, a food processing company. The Tetley group had financed this acquisition.
Tata Tea has three national brands and three local brands under Tata Tea. Gold, premium and Agni are national brands, while, Gemini, Chakra Gold and Kanan Devan are limited to Assam. Recently, Tata Tea launched single-origin, orthodox long-leaf tea grown in Assam, Darjeeling, Nilgiri and Sri Lanka to give consumers a taste of champagne tea at a reasonable price.
The market-breadth was positive. Against 877 shares rising on BSE, 626 declined. Just 50 shares were unchanged. Gainers outpaced losers by a ratio of 1.4:1.The BSE clocked a turnover of Rs 438 crore.
State Bank of India (SBI) gained 1% to Rs 1143, after the state-run bank said it will raise its benchmark prime lending rate by 75 basis points to 12.25% from Tuesday (20 February 2007). This is the second time that SBI, which owns nearly a quarter of banking sector assets in India, has raised its benchmark lending rate in two months. It last lifted the rate to 11.5% in late December.
Saregama India jumps on restructuring
Saregama India rose 3.02% to Rs 236.90, after the board approved the amalgamation of Saregama Films with the company.A mere 392 shares were traded on the BSE.
The scrip has been volatile in the last few months. From Rs 184.35 on 12 December 2006, the Saregama India scrip surged amid volatility to Rs 248.85 by 19 January 2007, only to slip to Rs 202.80 by 14 February. At this level, the stock rose to Rs 229.95 by 19 February 2007.
At the current market price of Rs 236.90, Saregama India trades at 23.50 times its Q3 December 2006 annualized EPS of Rs 10.08.
Saregama India's board of directors has approved the amalgamation of Saregama Films (SFL) with the company from 31 March 2007.SEL is a wholly-owned subsidiary and is engaged in production and distribution of films as also television software in regional languages.Further, Saregama India will begin work on four - five movies this year. The budgets for the movies range from Rs 4 crore - Rs 12 crore each.
In December 2006, Saregama India had been in talks with leading cellphone operators such as Airtel and Hutch for offering musical tracks, which could be used as ring-tones, ring-back tones, background music and SMSes. It is also in similar discussions with cellphone manufacturers such as Nokia and Motorola.
Saregama, popular for its HMV brand, has more than 3 lakh musical tracks, of which 1.70 lakh have already been digitised. It has musical tracks in as many as 23 languages, and across every genre of music with regional and national relevance.
Saregama holds the home video distribution rights of five leading Hollywood producers, including Warner Brothers.
Saregama India has posted a net profit growth of 43.40% to Rs 3.70 crore (Rs 2.58 crore) in Q3 December 2006. Net sales for the same quarter rose 4.90% to Rs 32.55 crore from Rs 31.03 crore.
Tata Tea gains on plan to dilute stake in north India plantations
Tata Tea rose 0.91% to Rs 679, on deciding to offload 80% stake in its North India Plantation Operations to a group of investors and employees.
Amalgamated Plantations, the company to which the Tatas will transfer its North India Plantation Operations (NIPO) business, will take over the plantation operations from 1 April 2007. Tata Tea has 20 plantations in Assam and five in Dooars (West Bengal), spread over 24,000 hectares, for an enterprise value of Rs 360 crore.
While Tata Tea will hold 20% equity in the resulting company, International Finance Corporation, a subsidiary of the World Bank, and IL&FS will hold 20% each. In addition to the three principal shareholders, Globally Managed Services (GMS), which is engaged in field work from non-tea operations, will also hold a minority stake, along with plantation employees.
This move is in line with Tata Tea’s vision of focusing on the non-plantation business, and becoming a strong player in the branded beverages business. Two years back, the company had carried out a similar exercise for its south India plantations, which were divested to Kanan Devan Hills Plantations on similar lines.
As per an official of Tata Tea, the new company will pursue crop diversification and foray into agri-products. 'The intent is to ensure that the tea operations achieve a new level of stable profitability because of new streams of income,' he added.
Significantly, the Assam Government has permitted using 5% of the total land holdings in the state under tea plantations for multi-crop cultivation.
Tata Tea is awaiting a similar approval from the West Bengal Government. It intends to use the 5% land holdings for fishery, horticulture and floriculture projects, apart from growing vegetables and spices. Later, the company may also take up hatchery and other projects.
The counter clocked a thin volume of 3,091 shares on BSE.Tata Tea had declined in the last few days. From Rs 725.35 on 1 February, the stock declined to Rs 672.85 by 19 February 2007.
Tata Tea reported 50.90% rise in net profit during Q3 December 2006 to Rs 94.20 crore compared to Rs 62.41 crore in Q3 December 2005. Net sales for the same quarter rose 4.40% to Rs 290.77 crore (Rs 278.47 crore).
Other income jumped to Rs 71.49 crore, 185.70% more than in the year ago period. Tata Tea collected Rs 63.54 from the sale of investments, and the rest from other items.
Tata Tea reported a surge in consolidated net profit in the December 2006 quarter to Rs 117.19 crore (Rs 60.08 crore). Total income during the quarter went up to Rs 1119.32 crore (Rs 812.02 crore).
During the December quarter, Tata Tea issued 28,10,000 equity shares at Rs 777 per share and an equal number of warrants, to Tata Sons on a preferential basis. The warrants are convertible into equity shares, on a date after 1 April 2007 but before 31 March 2008.
Tata Tea has also made an investment of Rs 763.39 crore in its subsidiary, Tata Tea GB, UK, to part finance a 25% stake in Energy Brands Inc, USA (EBI). This investment in the subsidiary was financed by bridge loans, the interest on which amounts to Rs 12.41 crore. These loans will be repaid from the proceeds of the preferential issue to Tata Sons, the sale of investments and plantation restructuring.
Tata Tea bought the UK-based Tetley for $ 407 million in 2000, and its subsidiary, Tata Coffee, purchased US-based Eight o’Clock Coffee for $ 220 million in June 2006.
In May 2006, Tata Tea, UK, acquired Jemca, a tea company in the Czech Republic, from Alima Znackova Potravina, a food processing company. The Tetley group had financed this acquisition.
Tata Tea has three national brands and three local brands under Tata Tea. Gold, premium and Agni are national brands, while, Gemini, Chakra Gold and Kanan Devan are limited to Assam. Recently, Tata Tea launched single-origin, orthodox long-leaf tea grown in Assam, Darjeeling, Nilgiri and Sri Lanka to give consumers a taste of champagne tea at a reasonable price.
Labels: Saregama India, Tata Tea
posted by SY at 12:21 PM
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