Volatility strikes
The market is suffering from acute volatility, moving in and out of positive ground, on account of a mixed trend in pivotals. At 11:27 IST the BSE Sensex was up 12.30 points, at 14,526.14. The Sensex had also struck a fresh all-time high of 14,543.97 in intra-day trade. Earlier, the Sensex had opened lower, at 14,479.58, and slipped to 14,468.99 on heavy selling.
The total turnover on BSE amounted to Rs 2829 crore, boosted by three huge block deals of 23.14 lakh shares each in TCS, at an average Rs 1299.26 per share in opening trade. The counter was the top-traded on BSE with a turnover of Rs 906.96 crore. The TCS stock was down 0.85% to Rs 1293.90 on total volumes of 69.80 lakh shares.
The market-breadth was positive. For 1,474 shares advancing on BSE, 922 declined. Just 63 scrips remained unchanged.Among the 30-Sensex pack, 19 declined while the rest advanced.
Equity-dilution concerns dent RComm
Reliance Communications dropped 4% to Rs 492.75, partly due to profit-taking and partly due to concerns arising from equity dilution due to the large FCCB issue.As many 13.8 lakh shares changed hands in the counter on BSE.
The conversion premium is 30% over a reference share price of Rs 508.6378. The relatively lower-than-expected premium raised concerns that there could be early dilution of equity within one or two years. Reliance Communications (RCL) on Monday (5 February 2007) raised a huge $1 billion through a convertible bond issue.
RCL stock had surged 5% to a lifetime closing high of Rs 515.10 on Monday (5 February 2007) ahead of the news of an FCCB issue hitting the market after trading hours. The stock had spurted 18.4% in six trading sessions to Rs 515.10 by 5 February 2007 from Rs 434.95 on 24 January 2007, partly boosted by robust Q3 December 2006 results which were unveiled on 31 January 2007.
The proceeds from the issue will be utilised to part-finance the company’s $2.5 billion expansion programme. Last week, RCL Chairman, Anil Ambani, had announced a capital expenditure (capex)to expand coverage to 15,000-20,000 new towns. The capex was proposed to be funded through a mix of internal accruals and debt. In March 2006, Reliance Communications (RCL) had completed an FCCB issue to raise $500 million.
The company is going ahead with its expansion plans irrespective of the status of Hutch-Essar. RCL has expressed interest in buying 100% in Hutch-Essar. Vodafone and Hinduja group are also in the race for Hutch-Essar. With over 30 million subscribers, RCL is the second-largest telecom operator by subscriber numbers.
Reliance Communications also plans to roll out its Direct-to-Home (DTH) and IPTV services in the third quarter of the next financial year. Huge investments will be made in creating infrastructure to support these operations.
The company's Flag Telecom unit, which has received approval from the board, will be spending an additional $1.5 billion (about Rs 7,000 crore) on expanding and improving its undersea cable network. At present, Flag Telecom operates the world's largest private under-sea cable system, spanning 65,000 km, and a customer base of over 200 leading operators, which include the top-10 international carriers.
Recently, shareholders of Reliance Communications approved a scheme of arrangement by way of demerger of the existing wireless towers (CDMA and GSM) and related infrastructure of the company to its subsidiary, Reliance Telecom Infrastructure (RTIL). Under the scheme of transfer, more than 12,000 towers will be consolidated under RTIL.
RCL’s consolidated net profit jumped 198 % in Q3 December 2006 quarter to Rs 924.42 crore, on 26% growth in consolidated revenue to Rs 3755.30 crore.
Pyramid Saimira Theatre hits the roof on Malaysian JV
Cinema operator Pyramid Saimira Theatre climbed 5%, the maximum daily limit, to Rs 442.40, on plans to set up an equal joint venture for a chain of cinema halls in Malaysia.
The company has decided to tie-up with Asian Integrated Industries and to invest Rs 240 crore in the joint venture.The scrip clocked 4,902 shares on the BSE. There were pending buy orders for 2.84 lakh shares at the maximum price.
The newly-listed Pyramid Saimira Theatre (PTSL) was bullish since mid-January 2007. From Rs 190.15 on 19 January 2007, it jumped 121.58% to Rs 421.35 by 5 February 2007. Earlier, the scrip had slipped from Rs 189.95 on 10 January to Rs 190.15 by 19 January 2007.
The stock was valued 153.6% in less than a month of its listing at Rs 158.20 (closing price on BSE on the day of its debut) on 5 January 2007. The company had priced its IPO at the higher end of the Rs 88 - Rs 100 price-band.
At the current market price of Rs 442.40, Pyramid Saimira Theatre (PSTL) trades at 60.76 times its Q3 December 2006 annualized EPS of Rs 7.28.
UBS Securities had on 22 January 2007 purchased 2.2 lakh shares at Rs 211 on BSE in a block deal. On the same day, the foreign investor bought 2.3 lakh shares on NSE at Rs 211.55.
Recently, the PTSL’s board approved an arrangement with Ritual Developers, Bangalore, for constructing 15 malls, whereby Pyramid will establish and manage multiplexes in Karnataka.
The board has also approved the company's foray into northern and western (Chattisgarh, Uttar Pradesh, Madhya Pradesh, Maharashtra and Gujarat) India. The board of Pyramid Saimira Theatre (PSTL) has decided to explore inorganic growth opportunities in the core business – exhibition of movies.
PSTL is focussed on distribution and exhibition of films. The company had 194 screens under operational management as on 31 December 2006. PSTL's objective is to have presence in all categories of theatres including malls, multiplexes, cineplexes and standalones across the country in Tier I, II and III locations.
PSTL’s strategy is to distribute digital films simultaneously in a large number of cinema halls. This will bring in maximum revenues for the company.
The company reported a net profit of Rs 5.15 crore in the December 2006 quarter on total income of Rs 46.05 crore. For April-December 2006, the company reported a net profit of Rs 10.04 crore on revenue of Rs 98.58 crore.
The total turnover on BSE amounted to Rs 2829 crore, boosted by three huge block deals of 23.14 lakh shares each in TCS, at an average Rs 1299.26 per share in opening trade. The counter was the top-traded on BSE with a turnover of Rs 906.96 crore. The TCS stock was down 0.85% to Rs 1293.90 on total volumes of 69.80 lakh shares.
The market-breadth was positive. For 1,474 shares advancing on BSE, 922 declined. Just 63 scrips remained unchanged.Among the 30-Sensex pack, 19 declined while the rest advanced.
Equity-dilution concerns dent RComm
Reliance Communications dropped 4% to Rs 492.75, partly due to profit-taking and partly due to concerns arising from equity dilution due to the large FCCB issue.As many 13.8 lakh shares changed hands in the counter on BSE.
The conversion premium is 30% over a reference share price of Rs 508.6378. The relatively lower-than-expected premium raised concerns that there could be early dilution of equity within one or two years. Reliance Communications (RCL) on Monday (5 February 2007) raised a huge $1 billion through a convertible bond issue.
RCL stock had surged 5% to a lifetime closing high of Rs 515.10 on Monday (5 February 2007) ahead of the news of an FCCB issue hitting the market after trading hours. The stock had spurted 18.4% in six trading sessions to Rs 515.10 by 5 February 2007 from Rs 434.95 on 24 January 2007, partly boosted by robust Q3 December 2006 results which were unveiled on 31 January 2007.
The proceeds from the issue will be utilised to part-finance the company’s $2.5 billion expansion programme. Last week, RCL Chairman, Anil Ambani, had announced a capital expenditure (capex)to expand coverage to 15,000-20,000 new towns. The capex was proposed to be funded through a mix of internal accruals and debt. In March 2006, Reliance Communications (RCL) had completed an FCCB issue to raise $500 million.
The company is going ahead with its expansion plans irrespective of the status of Hutch-Essar. RCL has expressed interest in buying 100% in Hutch-Essar. Vodafone and Hinduja group are also in the race for Hutch-Essar. With over 30 million subscribers, RCL is the second-largest telecom operator by subscriber numbers.
Reliance Communications also plans to roll out its Direct-to-Home (DTH) and IPTV services in the third quarter of the next financial year. Huge investments will be made in creating infrastructure to support these operations.
The company's Flag Telecom unit, which has received approval from the board, will be spending an additional $1.5 billion (about Rs 7,000 crore) on expanding and improving its undersea cable network. At present, Flag Telecom operates the world's largest private under-sea cable system, spanning 65,000 km, and a customer base of over 200 leading operators, which include the top-10 international carriers.
Recently, shareholders of Reliance Communications approved a scheme of arrangement by way of demerger of the existing wireless towers (CDMA and GSM) and related infrastructure of the company to its subsidiary, Reliance Telecom Infrastructure (RTIL). Under the scheme of transfer, more than 12,000 towers will be consolidated under RTIL.
RCL’s consolidated net profit jumped 198 % in Q3 December 2006 quarter to Rs 924.42 crore, on 26% growth in consolidated revenue to Rs 3755.30 crore.
Pyramid Saimira Theatre hits the roof on Malaysian JV
Cinema operator Pyramid Saimira Theatre climbed 5%, the maximum daily limit, to Rs 442.40, on plans to set up an equal joint venture for a chain of cinema halls in Malaysia.
The company has decided to tie-up with Asian Integrated Industries and to invest Rs 240 crore in the joint venture.The scrip clocked 4,902 shares on the BSE. There were pending buy orders for 2.84 lakh shares at the maximum price.
The newly-listed Pyramid Saimira Theatre (PTSL) was bullish since mid-January 2007. From Rs 190.15 on 19 January 2007, it jumped 121.58% to Rs 421.35 by 5 February 2007. Earlier, the scrip had slipped from Rs 189.95 on 10 January to Rs 190.15 by 19 January 2007.
The stock was valued 153.6% in less than a month of its listing at Rs 158.20 (closing price on BSE on the day of its debut) on 5 January 2007. The company had priced its IPO at the higher end of the Rs 88 - Rs 100 price-band.
At the current market price of Rs 442.40, Pyramid Saimira Theatre (PSTL) trades at 60.76 times its Q3 December 2006 annualized EPS of Rs 7.28.
UBS Securities had on 22 January 2007 purchased 2.2 lakh shares at Rs 211 on BSE in a block deal. On the same day, the foreign investor bought 2.3 lakh shares on NSE at Rs 211.55.
Recently, the PTSL’s board approved an arrangement with Ritual Developers, Bangalore, for constructing 15 malls, whereby Pyramid will establish and manage multiplexes in Karnataka.
The board has also approved the company's foray into northern and western (Chattisgarh, Uttar Pradesh, Madhya Pradesh, Maharashtra and Gujarat) India. The board of Pyramid Saimira Theatre (PSTL) has decided to explore inorganic growth opportunities in the core business – exhibition of movies.
PSTL is focussed on distribution and exhibition of films. The company had 194 screens under operational management as on 31 December 2006. PSTL's objective is to have presence in all categories of theatres including malls, multiplexes, cineplexes and standalones across the country in Tier I, II and III locations.
PSTL’s strategy is to distribute digital films simultaneously in a large number of cinema halls. This will bring in maximum revenues for the company.
The company reported a net profit of Rs 5.15 crore in the December 2006 quarter on total income of Rs 46.05 crore. For April-December 2006, the company reported a net profit of Rs 10.04 crore on revenue of Rs 98.58 crore.
Labels: Pyramid Saimira Theatre, RComm FCCB issue, stock market news
posted by SY at 12:31 PM
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