28 Dec 2009, 0041 hrs IST, Ramkrishna Kashelkar, ET Bureau
Supreme Petrochemicals is India’s largest producer and exporter of polystyrene (PS) polymer with an installed capacity of 272,000 tonne per annum (TPA). The company acquired Shin Ho Petrochemicals in 2006 with a manufacturing capacity of 6,000 TPA of expandable polystyrene (EPS) at Chennai. The name of the company was later changed to SPL Polymers, before merging it with Supreme Petrochemicals.
In 2006, the company had entered into an MoU with the Maharashtra government to set up a world class styrenics complex and a minor port in the Raigad district at an estimated investment of Rs 1,115 crore. However, the land acquisition for the project is still continuing through MIDC while the company has obtained environmental clearances. The company has implemented a share buyback last year to acquire and extinguish 15.4 lakh shares. The company’s equity capital now stands reduced to Rs 96.8 crore.
GROWTH DRIVERS: The polystyrene industry globally had been suffering from overcapacity and stagnating demand due to competition from polypropylene. However, the scenario has improved with nearly 1.5 million tonne or 10% of the world’s PS capacity closing down in last three years. At the same time, the demand prospects are improving. The lightweight sheets made from extruded PS are increasingly being used for insulation in construction buildings to reduce energy consumption. In fact several developed countries have made this kind of insulation mandatory, and even in India the concept is gaining currency as part of ‘Green Building’ initiatives. In fact the first half of 2009 witnessed the domestic demand for PS spurt 22% against a year ago.
Supreme Petrochemicals is also shifting its focus from commodity polymer to value added varieties such as coloured, compounded, specialty, expandable, extruded and cup grade polystyrene. It has lined up investments of over Rs 200 crore to expand its capacities in all these value added products within next 18 months. The company has also entered in a tie-up with Italy’s Ultrabatch to manufacture and market high-end additive masterbatches, which are concentrated mixture of pigments and additives. Similarly, it has joined hands with the US based Nova Chemicals to set up 20,400 TPA cup-grade EPS plant in India, which has recently commenced operations.
FINANCIALS: The company has been stagnating over last 5 years - both in case of topline as well as bottom line - due to difficult situations in the global polystyrene markets. During these five years, the company improved its debt-equity ratio gradually to 0.7 as on June 30, ’09 as against 1.48 five years ago. For the year ended in June ’09, the company recorded a net profit of Rs 19.2 crore despite a net loss of Rs 46.7 crore in the December ’08 quarter due to inventory losses. A strong rebound in demand in the first half of 2009 enabled the company to wipe out these losses and end the year in profit.
VALUATIONS: At the current market price of Rs 26 the company is valued at eight times its profits for the trailing 12 months. The current price is just 1.3 times the book value of the company’s stock price. Going forward, we expect the company to report net profit after tax of Rs 55 crore during the year ending June 2010, which translates in a forward P/E of 4.6. The dividend yield of 3.8% can add to the margin of safety for an investor. Considering the growth prospects as a result of the industry turnaround Supreme Petrochemicals appears attractively priced.
VIA: E.T
Monday, December 28, 2009
RIL successfully tests its peak output capacity of K-G fields
28 Dec 2009, 2108 hrs IST, PTI
NEW DELHI: Mukesh Ambani-run Reliance Industries today said it has successfully tested the design capacity of its massive eastern offshore Krishna-Godavari basin D6 field production facilities.
"A flow rate of 80 million standard cubic meters (the peak production envisaged from KG-D6 fields) was achieved through the KG-D6 facilities and delivered" to the pipeline, a company statement said here.
RIL, which is currently producing about 60 mmscmd gas from two of the 18 gas discoveries in the KG-D6 block, has put deep-sea production facilities to produce 80 mmscmd. These facilities were successfully tested last week.
"Within a month of emerging as the largest producer of natural gas in the country, RIL announces that it has successfully carried out an assessment of the design capacity of the KG-D6 deepwater gas production facilities on December 23," the statement said.
80 million units of gas was delivered to the Reliance Gas Transportation Infrastructure Ltd -- the firm that owns the East-West pipeline that transports the KG-D6 gas from Kakinada on the Andhra coast to Baruch in Gujarat.
"At present, RIL is producing about 60 mmscmd of gas which is being supplied to several priority sectors identified by the Government under its Gas Utilization Policy," it said.
NEW DELHI: Mukesh Ambani-run Reliance Industries today said it has successfully tested the design capacity of its massive eastern offshore Krishna-Godavari basin D6 field production facilities.
"A flow rate of 80 million standard cubic meters (the peak production envisaged from KG-D6 fields) was achieved through the KG-D6 facilities and delivered" to the pipeline, a company statement said here.
RIL, which is currently producing about 60 mmscmd gas from two of the 18 gas discoveries in the KG-D6 block, has put deep-sea production facilities to produce 80 mmscmd. These facilities were successfully tested last week.
"Within a month of emerging as the largest producer of natural gas in the country, RIL announces that it has successfully carried out an assessment of the design capacity of the KG-D6 deepwater gas production facilities on December 23," the statement said.
80 million units of gas was delivered to the Reliance Gas Transportation Infrastructure Ltd -- the firm that owns the East-West pipeline that transports the KG-D6 gas from Kakinada on the Andhra coast to Baruch in Gujarat.
"At present, RIL is producing about 60 mmscmd of gas which is being supplied to several priority sectors identified by the Government under its Gas Utilization Policy," it said.
Reliance Power's Rosa plant starts generation
28 Dec 2009, 1747 hrs IST, IANS
ROSA: One of the four 300 MW-capacity units of a thermal power plant developed by Reliance Power here was commissioned here Monday morning.
The second 300 MW-unit will be commissioned by the end of January, and will be followed by the other two 300 MW-units by March 2012. The 1,200-MW plant at Roja, is located about 175 km from Uttar Pradesh capital Lucknow.
"In fact, March 2012 would mark the beginning of a new era in the history of Reliance Power as we hope to simultaneously commission two other power projects -- a 600-MW plant in Nagpur and a 1,300-MW plant at Sasan in Madhya Pradesh," said Reliance Power chief executive officer J.P. Chalasani.
Significantly, the Rs.6,000-crore Rosa project has not only been touted as the largest single investment by any private player in this state, but it is also the first Reliance Power plant to start generation.
"It is a matter of pride for us to have moved well ahead of our schedule and instead of April 2010, we have succeeded in taking off today, the 77th birth anniversary of our founder Dhirubhai Ambani," Chalasani said.
"After taking over the project in 2007, we put it on the fast track, expeditiously acquired land, signed the PPA (power purchase agreement), obtained all statutory and regulatory clearances and approvals, and signed coal supply and transportation agreements."
According to him, "once the entire plant is commissioned, it will enable us to make an annual contribution of 9,000 million units to Uttar Pradesh, light up as many as four million homes, besides helping in bringing down load-shedding by at least 25 percent".
The project is expected to provide permanent direct employment to 300 people.
"However, it has tremendous potential to generate a lot of indirect employment for which preference would be given to local people," said Chalasani.
ROSA: One of the four 300 MW-capacity units of a thermal power plant developed by Reliance Power here was commissioned here Monday morning.
The second 300 MW-unit will be commissioned by the end of January, and will be followed by the other two 300 MW-units by March 2012. The 1,200-MW plant at Roja, is located about 175 km from Uttar Pradesh capital Lucknow.
"In fact, March 2012 would mark the beginning of a new era in the history of Reliance Power as we hope to simultaneously commission two other power projects -- a 600-MW plant in Nagpur and a 1,300-MW plant at Sasan in Madhya Pradesh," said Reliance Power chief executive officer J.P. Chalasani.
Significantly, the Rs.6,000-crore Rosa project has not only been touted as the largest single investment by any private player in this state, but it is also the first Reliance Power plant to start generation.
"It is a matter of pride for us to have moved well ahead of our schedule and instead of April 2010, we have succeeded in taking off today, the 77th birth anniversary of our founder Dhirubhai Ambani," Chalasani said.
"After taking over the project in 2007, we put it on the fast track, expeditiously acquired land, signed the PPA (power purchase agreement), obtained all statutory and regulatory clearances and approvals, and signed coal supply and transportation agreements."
According to him, "once the entire plant is commissioned, it will enable us to make an annual contribution of 9,000 million units to Uttar Pradesh, light up as many as four million homes, besides helping in bringing down load-shedding by at least 25 percent".
The project is expected to provide permanent direct employment to 300 people.
"However, it has tremendous potential to generate a lot of indirect employment for which preference would be given to local people," said Chalasani.
Natural gas prices have more than doubled from its six-year low
28 Dec 2009
Amidst the talks of economic recovery and improvement in global demand, the prices of most of the industrial commodities have more than doubled during March-November 2009. The gains also intensified due to a weaker dollar and the liquidity in the financial markets. Natural gas prices, however, seem to be driven more by its demand- supply equation rather than extraneous factor such as liquidity flows that seem to play key role in the prices of other commodities.
Unlike the major commodities, natural gas price experienced a continuous decline since the beginning of 2009, and reached a six-year low in August, only to show a rebound from early September. This behaviour has sustained in last one month from the time when natural gas’s energy counterpart, crude oil remained range bound, while the former has moved closer to its 2009 highs (chart-1).
To understand this price performance one needs to understand the characteristics and uses of natural gas. Natural gas, one of the common energy resources, is an odourless, highly flammable hydrocarbon gas, which has a wide range of industrial and household usage. It is widely used as a fuel for base load and combined cycle power plants. Liquefied Natural Gas (LNG) is a popular piped fuel, which is used for cooking and heating in most households in the developed world. Its industrial use as a fuel varies from that in boilers, baking ovens, air conditioning and in manufacture of fertilizers and petrochemicals. In recent years, compressed natural gas (CNG) is gaining in popularity as a relatively cleaner and cheaper alternative to auto fuels like diesel.
Globally, the natural gas usage accounts for about one-fifth of total energy consumption. US, Russia and Canada followed by Europe are the biggest producers as well as consumers of the commodity. The reason behind a sustained fall in prices in early 2009 was a continuous rise in storage inventories in the US, world’s biggest consumer of natural gas. Natural gas accounts for nearly a quarter of the US energy consumption. For this reason, the New York Mercantile Exchange future price derived from the spot deliveries taking place at the Henry Hub in Louisiana is considered the North American benchmark for the natural gas prices. US natural gas storage surged to a new all time high of 3,837 Billion Cubic Feet (Bcf), which was well after the prices started showing a turn around.
The turnaround was caused by the plunge in prices to a six-year low of $2.80 per Million British Thermal Units (mmbtu) in August ’09 even as the traditional demand season was approaching. However, rising inventory was more than offset by rising demand for heating due to colder than expected winter in northern hemisphere this year. So, in last few weeks, the price rise has been supported by the beginning of a strong heating season in the US and parts of Europe where temperatures dropped significantly in the first half of December. In most part of the US, temperatures were about 20% lower than normal. The early and strong cold weather thus reduced concerns regarding the abundance of natural gas in storage.
As can be seen from the second chart, the 2009 storage reached record high in the end of November and is way above its 5-year range and 5-year average.
Nonetheless, due to the expectations of continued extreme cold in consuming regions the latest reported stock withdrawal (of 207 Bcf) also exceeded the 5-year (2004-2008) average withdrawal by 63% and the last year’s withdrawal by 78%. In the coming weeks while the extent of chill in the consuming regions could help prices, the speculative interest could also lend a support. Traditionally, a rebalancing of commodity indices takes place in the start of a calendar year, wherein the commodities with dismal price performance during the year gain a higher weight in an index depending on its performance. Accordingly, funds adjust their exposures in the futures market which can give a push to prices.
However, once the winter season is over, the prices may experience a corrective pressure given the flattening of the forward curve. The direction of natural gas prices then would be a function of the end of the season stocks and the status of industrial demand.
VIA: E.T
Amidst the talks of economic recovery and improvement in global demand, the prices of most of the industrial commodities have more than doubled during March-November 2009. The gains also intensified due to a weaker dollar and the liquidity in the financial markets. Natural gas prices, however, seem to be driven more by its demand- supply equation rather than extraneous factor such as liquidity flows that seem to play key role in the prices of other commodities.
Unlike the major commodities, natural gas price experienced a continuous decline since the beginning of 2009, and reached a six-year low in August, only to show a rebound from early September. This behaviour has sustained in last one month from the time when natural gas’s energy counterpart, crude oil remained range bound, while the former has moved closer to its 2009 highs (chart-1).
To understand this price performance one needs to understand the characteristics and uses of natural gas. Natural gas, one of the common energy resources, is an odourless, highly flammable hydrocarbon gas, which has a wide range of industrial and household usage. It is widely used as a fuel for base load and combined cycle power plants. Liquefied Natural Gas (LNG) is a popular piped fuel, which is used for cooking and heating in most households in the developed world. Its industrial use as a fuel varies from that in boilers, baking ovens, air conditioning and in manufacture of fertilizers and petrochemicals. In recent years, compressed natural gas (CNG) is gaining in popularity as a relatively cleaner and cheaper alternative to auto fuels like diesel.
Globally, the natural gas usage accounts for about one-fifth of total energy consumption. US, Russia and Canada followed by Europe are the biggest producers as well as consumers of the commodity. The reason behind a sustained fall in prices in early 2009 was a continuous rise in storage inventories in the US, world’s biggest consumer of natural gas. Natural gas accounts for nearly a quarter of the US energy consumption. For this reason, the New York Mercantile Exchange future price derived from the spot deliveries taking place at the Henry Hub in Louisiana is considered the North American benchmark for the natural gas prices. US natural gas storage surged to a new all time high of 3,837 Billion Cubic Feet (Bcf), which was well after the prices started showing a turn around.
The turnaround was caused by the plunge in prices to a six-year low of $2.80 per Million British Thermal Units (mmbtu) in August ’09 even as the traditional demand season was approaching. However, rising inventory was more than offset by rising demand for heating due to colder than expected winter in northern hemisphere this year. So, in last few weeks, the price rise has been supported by the beginning of a strong heating season in the US and parts of Europe where temperatures dropped significantly in the first half of December. In most part of the US, temperatures were about 20% lower than normal. The early and strong cold weather thus reduced concerns regarding the abundance of natural gas in storage.
As can be seen from the second chart, the 2009 storage reached record high in the end of November and is way above its 5-year range and 5-year average.
Nonetheless, due to the expectations of continued extreme cold in consuming regions the latest reported stock withdrawal (of 207 Bcf) also exceeded the 5-year (2004-2008) average withdrawal by 63% and the last year’s withdrawal by 78%. In the coming weeks while the extent of chill in the consuming regions could help prices, the speculative interest could also lend a support. Traditionally, a rebalancing of commodity indices takes place in the start of a calendar year, wherein the commodities with dismal price performance during the year gain a higher weight in an index depending on its performance. Accordingly, funds adjust their exposures in the futures market which can give a push to prices.
However, once the winter season is over, the prices may experience a corrective pressure given the flattening of the forward curve. The direction of natural gas prices then would be a function of the end of the season stocks and the status of industrial demand.
VIA: E.T
Kemrock Industries>> Dilution effect
The Vadodara-based manufacturer of composite plastics and products, Kemrock Industries, recently announced its board approval for Rs 400 crore of preferential issue of equity shares and issued 16 lakh equity warrants to a strategic investor. The warrants were issued at Rs 90 each at 25% of the issue price of the equity shares. The rest 75% will become payable over the next 18 months on conversion of the warrants.
Earlier in May ‘08, the company allotted 4.6 lakh shares and 3.93 lakh warrants to the same strategic investor, RPM International, at Rs 650 each on a preferential basis. RPM International, a US-based manufacturer of paints and sealants, currently holds 15.85 lakh equity shares or 14.4% of the equity of the company. Assuming a full conversion of the recently issued 16 lakh warrants, RPM will become the second largest shareholder in the company after the promoter and managing director Mr. Kalpesh Patel. However, crossing the 15% holding limit will trigger an automatic open offer for the company, which can make it the largest shareholder of the company.
Kemrock’s performance on the bourses has been spectacular in ‘09 so far despite a forgettable ‘08. In ‘08, the company suffered from weak earnings performance that impacted its valuations. The company, which was trading at over 45 times its profits at the start of ‘08, was being valued at just 5 times the profits by the year end.
During ‘09, Kemrock’s valuation improved swiftly despite a continuing stagnancy in its profit growth. Currently, the company’s market capitalisation is twoand-a-half times that at the start of the year. However, this is mainly due to doubling of the P/E multiple of 11, as its per share earnings grew merely 10%.
The company has also diluted its equity periodically, which has impacted the per share earnings. Between December ‘07 and December ‘09 the equity has expanded nearly 46% from Rs 7.55 crore to Rs 11.01 crore. This is just the paid-up equity without considering outstanding warrants that can be converted into equity shares at the option of the holder.
Considering the company’s successive equity dilutions, retail shareholders are unlikely to benefit from any future earnings growth by the company.
via: E.T
Earlier in May ‘08, the company allotted 4.6 lakh shares and 3.93 lakh warrants to the same strategic investor, RPM International, at Rs 650 each on a preferential basis. RPM International, a US-based manufacturer of paints and sealants, currently holds 15.85 lakh equity shares or 14.4% of the equity of the company. Assuming a full conversion of the recently issued 16 lakh warrants, RPM will become the second largest shareholder in the company after the promoter and managing director Mr. Kalpesh Patel. However, crossing the 15% holding limit will trigger an automatic open offer for the company, which can make it the largest shareholder of the company.
Kemrock’s performance on the bourses has been spectacular in ‘09 so far despite a forgettable ‘08. In ‘08, the company suffered from weak earnings performance that impacted its valuations. The company, which was trading at over 45 times its profits at the start of ‘08, was being valued at just 5 times the profits by the year end.
During ‘09, Kemrock’s valuation improved swiftly despite a continuing stagnancy in its profit growth. Currently, the company’s market capitalisation is twoand-a-half times that at the start of the year. However, this is mainly due to doubling of the P/E multiple of 11, as its per share earnings grew merely 10%.
The company has also diluted its equity periodically, which has impacted the per share earnings. Between December ‘07 and December ‘09 the equity has expanded nearly 46% from Rs 7.55 crore to Rs 11.01 crore. This is just the paid-up equity without considering outstanding warrants that can be converted into equity shares at the option of the holder.
Considering the company’s successive equity dilutions, retail shareholders are unlikely to benefit from any future earnings growth by the company.
via: E.T
Thursday, December 17, 2009
Chettinad Cement to expand capacity
Total capacity to reach 13.2 million tonnes
Funding through internal accruals and loans
CHENNAI: Chettinad Cement has drawn up plans to expand the capacity to 13.2 million tonnes from 7.5 million tonnes. The company has plants in Puliyur, Karikkali and Ariyalur (all in Tamil Nadu). Addressing presspersons here on Thursday, after unveiling the company’s new corporate identity, M A M R Muthiah, Managing Director, said the Puliyur and Karikkali plants would together see a capacity enhancement of 2.7 million tonnes by December next year through a combination of process improvements and brownfield expansion involving an additional line in Karikkali.
Greenfield unit
Mr. Muthiah said the company was planning to set up a greenfield plant with a capacity of three million tonnes annually at Gulbarga (Karnataka) where huge limestone reserves were available. “This location is slated for further expansion in similar sized modules in future up to 2015”, he said.
The Gulbarga unit including a 45 MW power plant would involve an outlay of Rs. 700 crore, Mr. Muthiah said. This would also be funded with internal accruals and borrowings, Mr. Muthiah said.
According to C. Sudhakar, President (Operations and Projects), the company has invested significantly in captive power generation.
The current installations and expansion under completion in Tamil Nadu, totalling 105 MW, would meet 80 per cent of power requirements.
Funding through internal accruals and loans
CHENNAI: Chettinad Cement has drawn up plans to expand the capacity to 13.2 million tonnes from 7.5 million tonnes. The company has plants in Puliyur, Karikkali and Ariyalur (all in Tamil Nadu). Addressing presspersons here on Thursday, after unveiling the company’s new corporate identity, M A M R Muthiah, Managing Director, said the Puliyur and Karikkali plants would together see a capacity enhancement of 2.7 million tonnes by December next year through a combination of process improvements and brownfield expansion involving an additional line in Karikkali.
Greenfield unit
Mr. Muthiah said the company was planning to set up a greenfield plant with a capacity of three million tonnes annually at Gulbarga (Karnataka) where huge limestone reserves were available. “This location is slated for further expansion in similar sized modules in future up to 2015”, he said.
The Gulbarga unit including a 45 MW power plant would involve an outlay of Rs. 700 crore, Mr. Muthiah said. This would also be funded with internal accruals and borrowings, Mr. Muthiah said.
According to C. Sudhakar, President (Operations and Projects), the company has invested significantly in captive power generation.
The current installations and expansion under completion in Tamil Nadu, totalling 105 MW, would meet 80 per cent of power requirements.
Change in market timing to be effective from Jan 4
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) jointly decided on Thursday to implement the change in market timings from nine in the morning with effect from January 4, 2010.
Earlier, on Wednesday, both the exchanges separately announced that they would start trading from nine in the morning from December 18.
“Based on the market feedback, it has been jointly decided by the BSE and the NSE that the revision of market open timing to 9 a.m. shall be effective from Monday, January 4, 2010
Earlier, on Wednesday, both the exchanges separately announced that they would start trading from nine in the morning from December 18.
“Based on the market feedback, it has been jointly decided by the BSE and the NSE that the revision of market open timing to 9 a.m. shall be effective from Monday, January 4, 2010
Wednesday, December 16, 2009
NSE, BSE extend trading time
16th Dec'09
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have decided to extend the timing of trading from 9 a.m. with effect from Friday.
On NSE, normal market, retails debt market and limited physical market will open at 9 a.m.
The block trade session shall be available from 9 am to 9.35 am. On the futures & options segment, normal market / exercise market open at 9 a.m. and the normal market close time would remain unchanged at 3.30 p.m.
The Bombay Stock Exchange on Tuesday stated that it would change the trading time with effect from Friday and trading would commence from 9.45 a.m. to 3.30 p.m. instead of 9.55 a.m. to 3.30 p.m. in the equity and equity derivatives segments on all business days.
However, BSE stated that there will not be any change in timings of any other session in both the segments and the block deal window timings in the equity segment of the exchange will remain the same.
But on Wednesday BSE came out with a statement that it has been decided that the block deal window in the equity segment would be available from 9.45 a.m. to 10.20 a.m., with effect from Friday. However late on Wednesday evening — after the announcement of NSE — BSE officials confirmed that it too would start trading from 9 a.m.
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have decided to extend the timing of trading from 9 a.m. with effect from Friday.
On NSE, normal market, retails debt market and limited physical market will open at 9 a.m.
The block trade session shall be available from 9 am to 9.35 am. On the futures & options segment, normal market / exercise market open at 9 a.m. and the normal market close time would remain unchanged at 3.30 p.m.
The Bombay Stock Exchange on Tuesday stated that it would change the trading time with effect from Friday and trading would commence from 9.45 a.m. to 3.30 p.m. instead of 9.55 a.m. to 3.30 p.m. in the equity and equity derivatives segments on all business days.
However, BSE stated that there will not be any change in timings of any other session in both the segments and the block deal window timings in the equity segment of the exchange will remain the same.
But on Wednesday BSE came out with a statement that it has been decided that the block deal window in the equity segment would be available from 9.45 a.m. to 10.20 a.m., with effect from Friday. However late on Wednesday evening — after the announcement of NSE — BSE officials confirmed that it too would start trading from 9 a.m.
Tuesday, December 15, 2009
BSE announces change in trade timings
BSE announces change in trade timings
15 Dec 2009, 1552 hrs IST, ET Bureau
MUMBAI: The Bombay Stock Exchange has announced change in trading timings for its equity and equity derivatives segments. With effect from Friday, December 18, 2009, trading will commence from 9.45 a.m. onwards, instead of the present timing of 9.55 am.
The continuous trading session in both segments will be from 9.45 a.m. to 3.30 pm on all business days. There will be no change in timings of any other session in both the segments.
15 Dec 2009, 1552 hrs IST, ET Bureau
MUMBAI: The Bombay Stock Exchange has announced change in trading timings for its equity and equity derivatives segments. With effect from Friday, December 18, 2009, trading will commence from 9.45 a.m. onwards, instead of the present timing of 9.55 am.
The continuous trading session in both segments will be from 9.45 a.m. to 3.30 pm on all business days. There will be no change in timings of any other session in both the segments.
Monday, December 14, 2009
Abu Dhabi provides $10 b to Dubai World
DUBAI: Oil rich Abu Dhabi has provided Dubai World, the state-owned holding company $10 billion to meet some of its most pressing obligations.
Out of the total package which will be channelled to the Dubai Financial Support Fund, $4.1 billion will be used to cover real estate giant Nakheel’s payments for an Islamic bond that matured on Monday.
Dubai World will utilise the balance amount to cover interest expenses and working capital requirements till April 30, 2010, provided the company manages to successfully negotiate a ‘standstill arrangement’ with its creditors, a Dubai government statement said. “The statement shows that despite its commitment to Dubai, Abu Dhabi will not provide unconditional support. It will fund those companies in Dubai that are prepared to follow sound and sustainable financial principles,” an Abu Dhabi based investment banker, who did not wish to be named, told The Hindu.
The statement added that the funds that have been released will also be used to meet the obligations of Dubai World’s domestic creditors and contractors, based in Dubai. Besides, the central bank has expressed its readiness to step in to support local banks in the United Arab Emirates (UAE), should they face a liquidity crisis. Analysts say that the Abu Dhabi’s intervention has not come as a surprise for two reasons. First, the failure of the Dubai World to meet its financial obligations would have affected the national image of the UAE, having long term negative political and economic implications. Second, the cost of borrowing to fund Abu Dhabis own mega-projects would have surged, because the UAE is part of emerging markets, which would have been hit had Dubai World defaulted on its payments.
The government of Dubai is also set to announce a “comprehensive reorganisation law, a framework that is based upon internationally accepted standards for transparency and creditor protection,” the statement added. “This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations.”
According to the statement, Dubai’s ‘best days are yet to come’ and the city will “continue to be, a strong and vibrant global financial centre.”
Consul calls for Indian businessmen support
The Consul General of India in Dubai, Venu Rajamony, has called upon Indian businessmen to help infuse confidence in the Dubai economy, which was boosted on Monday by an infusion of $10 billion from the government of Abu Dhabi.The Consul General urged the Indian community, especially the Indian businessmen, to do everything possible to support measures being taken by the UAE and Dubai governments to stabilise the economy. He said that for India, the UAE was a valuable economic partner, and ties between the two countries were intensifying in all fields.
Out of the total package which will be channelled to the Dubai Financial Support Fund, $4.1 billion will be used to cover real estate giant Nakheel’s payments for an Islamic bond that matured on Monday.
Dubai World will utilise the balance amount to cover interest expenses and working capital requirements till April 30, 2010, provided the company manages to successfully negotiate a ‘standstill arrangement’ with its creditors, a Dubai government statement said. “The statement shows that despite its commitment to Dubai, Abu Dhabi will not provide unconditional support. It will fund those companies in Dubai that are prepared to follow sound and sustainable financial principles,” an Abu Dhabi based investment banker, who did not wish to be named, told The Hindu.
The statement added that the funds that have been released will also be used to meet the obligations of Dubai World’s domestic creditors and contractors, based in Dubai. Besides, the central bank has expressed its readiness to step in to support local banks in the United Arab Emirates (UAE), should they face a liquidity crisis. Analysts say that the Abu Dhabi’s intervention has not come as a surprise for two reasons. First, the failure of the Dubai World to meet its financial obligations would have affected the national image of the UAE, having long term negative political and economic implications. Second, the cost of borrowing to fund Abu Dhabis own mega-projects would have surged, because the UAE is part of emerging markets, which would have been hit had Dubai World defaulted on its payments.
The government of Dubai is also set to announce a “comprehensive reorganisation law, a framework that is based upon internationally accepted standards for transparency and creditor protection,” the statement added. “This law will be available should Dubai World and its subsidiaries be unable to achieve an acceptable restructuring of its remaining obligations.”
According to the statement, Dubai’s ‘best days are yet to come’ and the city will “continue to be, a strong and vibrant global financial centre.”
Consul calls for Indian businessmen support
The Consul General of India in Dubai, Venu Rajamony, has called upon Indian businessmen to help infuse confidence in the Dubai economy, which was boosted on Monday by an infusion of $10 billion from the government of Abu Dhabi.The Consul General urged the Indian community, especially the Indian businessmen, to do everything possible to support measures being taken by the UAE and Dubai governments to stabilise the economy. He said that for India, the UAE was a valuable economic partner, and ties between the two countries were intensifying in all fields.
Anil Ambani-led companies slide on regulatory action
14th Dec'09
Three Anil Ambani-led companies declined 0.71% to 1.17% at 15:11 IST on BSE after the finance ministry and Reserve Bank of India reportedly barred them from borrowing abroad for violating guidelines.
Meanwhile, the BSE Sensex was down 3.37 points, or 0.02%, to 17,115.66
Reliance Communications (RCom) lost 1.17% to Rs 181.45 in volatile trade. The stock swung between a high of Rs 186.50 and low of Rs 180.60 so far during the day. Reports of RCom looking to sell an undersea fiber optic network FLAG and a related US business, hoping to raise around $3 billion in cash, led the rally in the stock earlier in the day. However, the reports were denied by the company's spokesman in a clarification to a news agency, which triggered the fall.
Reliance Power (down 0.71%), and Reliance Natural Resources (down 1.14%), edged lower.
As per reports, three Anil Ambani group companies - RCom, Reliance Power, and Reliance Natural Resources (RNRL) were barred from borrowing abroad under the so-called automatic approvals route after they were found to have violated the external commercial borrowing (ECB) guidelines for loans to the tune of $2 billion.
As a result, any application from Anil Ambani group companies for ECBs or foreign currency convertible bonds (FCCBs) will be considered only under the approval route.
Under the automatic route, a company can raise funds directly from the overseas market, whereas it will require prior Reserve Bank of India (RBI) approval for raising funds under the non-automatic route.
Of the $5.3 billion that the Anil Dhirubhai Ambani Group (ADAG) has raised so far in 16 applications, more than 80%, or $4.25 billion, has come through the automatic route in 12 applications. The remaining 20%, or $1.05 billion, was raised in 4 applications under the approval route. RCom has led the chart with 9, of a total of 12, via the automatic route.
The difference between the rate at which these funds can be raised overseas and at which they can raised locally, can be as high as 400 basis points
Separately, Reliance Communications' share price estimate was cut to Rs 160 from Rs 210 at a foreign broking house which cited the effect of increased competition on earnings. The brokerage kept a sell rating on the stock
Three Anil Ambani-led companies declined 0.71% to 1.17% at 15:11 IST on BSE after the finance ministry and Reserve Bank of India reportedly barred them from borrowing abroad for violating guidelines.
Meanwhile, the BSE Sensex was down 3.37 points, or 0.02%, to 17,115.66
Reliance Communications (RCom) lost 1.17% to Rs 181.45 in volatile trade. The stock swung between a high of Rs 186.50 and low of Rs 180.60 so far during the day. Reports of RCom looking to sell an undersea fiber optic network FLAG and a related US business, hoping to raise around $3 billion in cash, led the rally in the stock earlier in the day. However, the reports were denied by the company's spokesman in a clarification to a news agency, which triggered the fall.
Reliance Power (down 0.71%), and Reliance Natural Resources (down 1.14%), edged lower.
As per reports, three Anil Ambani group companies - RCom, Reliance Power, and Reliance Natural Resources (RNRL) were barred from borrowing abroad under the so-called automatic approvals route after they were found to have violated the external commercial borrowing (ECB) guidelines for loans to the tune of $2 billion.
As a result, any application from Anil Ambani group companies for ECBs or foreign currency convertible bonds (FCCBs) will be considered only under the approval route.
Under the automatic route, a company can raise funds directly from the overseas market, whereas it will require prior Reserve Bank of India (RBI) approval for raising funds under the non-automatic route.
Of the $5.3 billion that the Anil Dhirubhai Ambani Group (ADAG) has raised so far in 16 applications, more than 80%, or $4.25 billion, has come through the automatic route in 12 applications. The remaining 20%, or $1.05 billion, was raised in 4 applications under the approval route. RCom has led the chart with 9, of a total of 12, via the automatic route.
The difference between the rate at which these funds can be raised overseas and at which they can raised locally, can be as high as 400 basis points
Separately, Reliance Communications' share price estimate was cut to Rs 160 from Rs 210 at a foreign broking house which cited the effect of increased competition on earnings. The brokerage kept a sell rating on the stock
Western India Shipyard jumps 17% in four days
Western India Shipyard rose 4.94% to Rs 12.32 at 13:01 IST on BSE, extending gains for the fourth consecutive day, after the company bagged an order worth Rs 5 crore for the repair of a deep water oil rig named JUR Noble Ed Holt.
The company announced the new order win during trading hours on Thursday, 10 December 2009, when the stock had jumped 4.97% to Rs 11.19.
Meanwhile, the BSE Sensex was up 131.57 points, or 0.76%, to 17,250.60.
On BSE, 2.14 lakh shares were traded in the counter as against an average daily volume of 1.69 lakh shares in the past one quarter.
The stock hit a high of Rs 12.32 and a low of Rs 12.10 so far during the day. The stock had hit a 52-week high of Rs 13.99 on 25 August 2009 and a 52-week low of Rs 3.10 on 9 March 2009.
The stock has risen 17% in just four trading sessions from a recent low of Rs 10.53 on 8 December 2009.
The company's equity capital is Rs 23.42 crore. Face value per share is Rs 2.
The rig berthed on 7 December 2009 and the repair works have commenced, the company said in a filing with BSE.
Western India Shipyard reported a net loss of Rs 4.47 crore in Q2 September 2009, lower than net loss of Rs 7.33 crore in Q2 September 2008. Net sales declined 15.4% to Rs 17.24 crore in Q2 September 2009 over Q2 September 2008.
The company is engaged in building and repairing ships. It operates as a composite ship repair facility in India. It offers ship services, including routine maintenance and damage repairs.
The company announced the new order win during trading hours on Thursday, 10 December 2009, when the stock had jumped 4.97% to Rs 11.19.
Meanwhile, the BSE Sensex was up 131.57 points, or 0.76%, to 17,250.60.
On BSE, 2.14 lakh shares were traded in the counter as against an average daily volume of 1.69 lakh shares in the past one quarter.
The stock hit a high of Rs 12.32 and a low of Rs 12.10 so far during the day. The stock had hit a 52-week high of Rs 13.99 on 25 August 2009 and a 52-week low of Rs 3.10 on 9 March 2009.
The stock has risen 17% in just four trading sessions from a recent low of Rs 10.53 on 8 December 2009.
The company's equity capital is Rs 23.42 crore. Face value per share is Rs 2.
The rig berthed on 7 December 2009 and the repair works have commenced, the company said in a filing with BSE.
Western India Shipyard reported a net loss of Rs 4.47 crore in Q2 September 2009, lower than net loss of Rs 7.33 crore in Q2 September 2008. Net sales declined 15.4% to Rs 17.24 crore in Q2 September 2009 over Q2 September 2008.
The company is engaged in building and repairing ships. It operates as a composite ship repair facility in India. It offers ship services, including routine maintenance and damage repairs.
PSL advances on fund raising buzz
14th Dec'09
PSL surged 3.02% to Rs 163.65 at 10:33 IST on BSE on reports the company has raised $50 million through external commercial borrowings to fund expansion.
The stock hit a high of Rs 164.70 and a low of Rs 160.70 so far during the day. The stock had hit a 52-week high of Rs 188 on 18 September 2009 and a 52-week low of Rs 59.50 on 9 March 2009.
The small-cap steel pipe maker has an equity capital of Rs 53.46 crore. Face value per share is Rs 10.
The current price of Rs 163.65 discounts the company's Q2 September 2009 annualised EPS of Rs 16.48, by a PE multiple of 9.93
As per reports, the funds were raised at nearly 500 basis points over Libor (London Interbank Offered Rate) from the state-owned banks through their overseas branches. External commercial borrowings (ECB) refers to overseas borrowings in foreign currencies by Indian companies. PSL plans to use the funds raised from the ECB to expand its capacity in terms of its capital expenditure and for modernization programme.
PSL is the largest producer of helical submerged arc welded (HSAW) pipes in India. The company's net profit fell 0.10% to Rs 21.58 crore on a 7.80% decline in net sales to Rs 593.64 crore in Q2 September 2009 over Q2 September 2008.
PSL surged 3.02% to Rs 163.65 at 10:33 IST on BSE on reports the company has raised $50 million through external commercial borrowings to fund expansion.
The stock hit a high of Rs 164.70 and a low of Rs 160.70 so far during the day. The stock had hit a 52-week high of Rs 188 on 18 September 2009 and a 52-week low of Rs 59.50 on 9 March 2009.
The small-cap steel pipe maker has an equity capital of Rs 53.46 crore. Face value per share is Rs 10.
The current price of Rs 163.65 discounts the company's Q2 September 2009 annualised EPS of Rs 16.48, by a PE multiple of 9.93
As per reports, the funds were raised at nearly 500 basis points over Libor (London Interbank Offered Rate) from the state-owned banks through their overseas branches. External commercial borrowings (ECB) refers to overseas borrowings in foreign currencies by Indian companies. PSL plans to use the funds raised from the ECB to expand its capacity in terms of its capital expenditure and for modernization programme.
PSL is the largest producer of helical submerged arc welded (HSAW) pipes in India. The company's net profit fell 0.10% to Rs 21.58 crore on a 7.80% decline in net sales to Rs 593.64 crore in Q2 September 2009 over Q2 September 2008.
Jaihind Projects builds on new order win
Jaihind Projects rose 1.01% to Rs 139.60 at 10:39 IST on BSE, after the company bagged an order worth Rs 24.53 crore from Bhagyanagar Gas for laying and construction of U/G steel P/L network & associated works for CNG & city gas projects.
The company announced the new order win during trading hours today, 14 December 2009.
Meanwhile, the BSE Sensex was up 54.91 points, or 0.32%, to 17,173.94.
On BSE, 764 shares were traded in the counter as against an average daily volume of 3,574 shares in the past one quarter.
The stock hit a high of Rs 140 and a low of Rs 137.25 so far during the day. The stock had hit a 52-week high of Rs 170 on 16 October 2009 and a 52-week low of Rs 32 on 12 March 2009.
The company's equity capital is Rs 7.26 crore. Face value per share is Rs 10.
In November 2009, Jaihind Projects had secured an order worth Rs 14.05 crore from Bharat Petroleum Corporation for laying cross-country pipeline and associated works from Kochi Refinery to Cochin aviation fuelling station (AFS) at Ndedumbassery in Cochin district of Kerala.
Jaihind Projects' net profit surged 50.62% to Rs 6.07 crore on 64.91% rise in net sales to Rs 64.71 crore in Q2 September 2009 over Q2 September 2008.
The company is engaged in engineering and construction services.
Promoters have pledged more than 31.83 lakh shares representing 43.86% of the equity capital of the company. Total Promoter shareholding in the company is 47.74% (as on 30 September 2009).
The company announced the new order win during trading hours today, 14 December 2009.
Meanwhile, the BSE Sensex was up 54.91 points, or 0.32%, to 17,173.94.
On BSE, 764 shares were traded in the counter as against an average daily volume of 3,574 shares in the past one quarter.
The stock hit a high of Rs 140 and a low of Rs 137.25 so far during the day. The stock had hit a 52-week high of Rs 170 on 16 October 2009 and a 52-week low of Rs 32 on 12 March 2009.
The company's equity capital is Rs 7.26 crore. Face value per share is Rs 10.
In November 2009, Jaihind Projects had secured an order worth Rs 14.05 crore from Bharat Petroleum Corporation for laying cross-country pipeline and associated works from Kochi Refinery to Cochin aviation fuelling station (AFS) at Ndedumbassery in Cochin district of Kerala.
Jaihind Projects' net profit surged 50.62% to Rs 6.07 crore on 64.91% rise in net sales to Rs 64.71 crore in Q2 September 2009 over Q2 September 2008.
The company is engaged in engineering and construction services.
Promoters have pledged more than 31.83 lakh shares representing 43.86% of the equity capital of the company. Total Promoter shareholding in the company is 47.74% (as on 30 September 2009).
Talbros Automotive accelerates on Japanese tie-up
14th Dec'09 (Monday)
Talbros Automotive Components gained 2.86% to Rs 45 at 10:19 IST on BSE, after the company signed a pact with Sanwa Packaging Industry Company, Japan for obtaining technical know-how for making heat shields for automotives.
The company made this announcement after trading hours on Friday, 11 December 2009.
Meanwhile, the BSE Sensex was up 90.65 points, or 0.53%, to 17,209.68.
On BSE, 1,102 shares were traded in the counter as against an average daily volume of 3,574 shares in the past one quarter.
The stock hit a high of Rs 46.40 and a low of Rs 45 so far during the day. The stock had hit a 52-week high of Rs 48.25 on 21 October 2009 and a 52-week low of Rs 15 on 12 March 2009.
The company's equity capital is Rs 12.35 crore. Face value per share is Rs 10.
The current price of Rs 45 discounts the company's Q2 September 2009 annualized EPS of Rs 2.49, by a PE multiple of 18.07.
The agreement is for a period of five years and it will help the company to expand its product bandwidth among its customers, Talbros said in a filing with BSE.
Talbros Automotive Components gained 2.86% to Rs 45 at 10:19 IST on BSE, after the company signed a pact with Sanwa Packaging Industry Company, Japan for obtaining technical know-how for making heat shields for automotives.
The company made this announcement after trading hours on Friday, 11 December 2009.
Meanwhile, the BSE Sensex was up 90.65 points, or 0.53%, to 17,209.68.
On BSE, 1,102 shares were traded in the counter as against an average daily volume of 3,574 shares in the past one quarter.
The stock hit a high of Rs 46.40 and a low of Rs 45 so far during the day. The stock had hit a 52-week high of Rs 48.25 on 21 October 2009 and a 52-week low of Rs 15 on 12 March 2009.
The company's equity capital is Rs 12.35 crore. Face value per share is Rs 10.
The current price of Rs 45 discounts the company's Q2 September 2009 annualized EPS of Rs 2.49, by a PE multiple of 18.07.
The agreement is for a period of five years and it will help the company to expand its product bandwidth among its customers, Talbros said in a filing with BSE.
Wednesday, December 9, 2009
One More Sovereign Downgrade, This Time Around Its Spain!
Standard & Poor's Ratings Services lowered its outlook on Spain to negative, saying the country will likely see "significantly lower" gross-domestic-product growth.
The ratings agency said a downgrade could come in the next two years if authorities don't take action to tackle fiscal and external imbalances. "If the government announces concrete fiscal measures that we believe could credibly achieve annual primary surpluses of 2% or higher by the end of the forecast period in 2012, downward pressure on the ratings may abate," said analyst Trevor Cullinan.
(Source:- http://online.wsj.com/article/BT-CO-20091209-707060.html)
Comment-
In just one month we have witnessed 3 major downgrades by global credit rating agencies, first it was Dubai, then Greece and now Spain. These are not so small economies that it won't hurt the sentiment, slowly it is becoming like a house of cards, one falls and the whole house collapses.
Last year it was ICE LAND
The ratings agency said a downgrade could come in the next two years if authorities don't take action to tackle fiscal and external imbalances. "If the government announces concrete fiscal measures that we believe could credibly achieve annual primary surpluses of 2% or higher by the end of the forecast period in 2012, downward pressure on the ratings may abate," said analyst Trevor Cullinan.
(Source:- http://online.wsj.com/article/BT-CO-20091209-707060.html)
Comment-
In just one month we have witnessed 3 major downgrades by global credit rating agencies, first it was Dubai, then Greece and now Spain. These are not so small economies that it won't hurt the sentiment, slowly it is becoming like a house of cards, one falls and the whole house collapses.
Last year it was ICE LAND
Micro Inks to delist shares from BSE, NSE
Wednesday December 9, 06:30 PM
MUMBAI (Reuters) - Micro Inks Ltd said on Wednesday it plans to delist its shares from the Bombay Stock Exhcnage and National Stock Exchange (^NSEI : 5112 -35.95 ) as founder and majority shareholder MHM Holding GmBH would acquire its shares held by the public.
MHM Holding is recommending a price of 550 rupees a share for the public shareholders of Micro Inks an an attractive exit oppourtunity, the Indian firm said in a statement to the BSE (^BSESN : 17125.22 -102.46 ).
Micro Inks shares closed up 7.6 percent at 524.65 rupees in a weak Mumbai market.
MUMBAI (Reuters) - Micro Inks Ltd said on Wednesday it plans to delist its shares from the Bombay Stock Exhcnage and National Stock Exchange (^NSEI : 5112 -35.95 ) as founder and majority shareholder MHM Holding GmBH would acquire its shares held by the public.
MHM Holding is recommending a price of 550 rupees a share for the public shareholders of Micro Inks an an attractive exit oppourtunity, the Indian firm said in a statement to the BSE (^BSESN : 17125.22 -102.46 ).
Micro Inks shares closed up 7.6 percent at 524.65 rupees in a weak Mumbai market.
NRIs are pouring money into real estate
This is one of the biggest ironies we have come across so far. The economic downturn in the US, Europe and the Dubai debacle - all had only one factor to blame. A bubble in real estate prices and mortgage loans! But it seems the trend is that of greed feeds greed. With NRIs from the West and the Gulf wanting to relocate to their home-country, the real estate market in India is seeing a never-before rally. The dollar-earning NRIs are willing to pay higher than market prices. Banks and mortgage lenders are all too willing to help their high ticket purchases with attractive interest rates. These funds are therefore feeding an asset bubble in Indian real estate, which was relatively less impacted by the global meltdown. A business daily reports that an estimated 25 m NRIs living in 130 countries have remitted US$ 52 bn to India so far this year. Most of it has directly come to real estate. Further, the current tight liquidity situation across US has enticed NRIs to mortgage loans in India. We do not see this as a very healthy sign as Indian real estate players and bankers have to be very careful about whether the high prices and risky loans are sustainable.
FM wants to do away with oil bonds
Two wrongs do not make a right. From the Oil Ministry's point of view, price controls on petroleum products is wrong. After all, the finances of state owned oil marketing companies are completely messed up because of the subsidized prices. These companies receive oil bonds from the Finance Ministry. From the Finance Ministry's point of view, oil bonds are wrong. They worsen the fiscal deficit situation. In fact, the Finance Ministry has not given any oil bonds to the Oil Ministry so far for the current fiscal. It might wait up to the next budget. The problem is how does a government increase prices of petroleum products without affecting the economy and its popularity? Especially, if it gets elected on the aam admi plank. In our view, no amount of accounting and procedural jugglery can solve the fundamental problem.
Sunday, December 6, 2009
Signet Overseas hits the roof after setting record date for bonus issue
Friday 4th Dec-09
Signet Overseas was locked at 5% upper limit at Rs 44.25 at 12:06 IST on BSE, after the company fixed 14 December 2009 as the record date for a 2:1 bonus issue.
The company announced the record date after market hours on Thursday, 3 December 2009. This is a maiden bonus from Signet Overseas.
Meanwhile, the BSE Sensex was up 84.63 points, or 0.49%, to 17,262.17.
On BSE, ten shares were traded in the counter as against an average daily volume of one share in the past one quarter.
The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level so far in the day. The stock had hit a 52-week high of Rs 50 on 29 January 2009 and an all time low of Rs 2.15 on 29 January 2009.
The company's equity capital is Rs 1.62 crore. Face value per share is Rs 10.
The current price of Rs 44.25 discounts the company's year ended March 2009 annualized EPS of Rs 12.59, by a PE multiple of 3.51.
Signet Overseas' net profit galloped 1076.5% to Rs 6 crore on 25.3% rise in net sales to Rs 80.42 crore in Q2 September 2009 over Q2 September 2008.
The company provides various kinds of sacks such as liner bags, valved bags, gussetted bags, hemmed bags, inside coated, box bags, bale wraps, mail bag, envelop bags, rubble sacks sand bags, zig zag mouthed, resin bags, paper-PE sandwich bags.
Signet Overseas was locked at 5% upper limit at Rs 44.25 at 12:06 IST on BSE, after the company fixed 14 December 2009 as the record date for a 2:1 bonus issue.
The company announced the record date after market hours on Thursday, 3 December 2009. This is a maiden bonus from Signet Overseas.
Meanwhile, the BSE Sensex was up 84.63 points, or 0.49%, to 17,262.17.
On BSE, ten shares were traded in the counter as against an average daily volume of one share in the past one quarter.
The stock opened with an upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level so far in the day. The stock had hit a 52-week high of Rs 50 on 29 January 2009 and an all time low of Rs 2.15 on 29 January 2009.
The company's equity capital is Rs 1.62 crore. Face value per share is Rs 10.
The current price of Rs 44.25 discounts the company's year ended March 2009 annualized EPS of Rs 12.59, by a PE multiple of 3.51.
Signet Overseas' net profit galloped 1076.5% to Rs 6 crore on 25.3% rise in net sales to Rs 80.42 crore in Q2 September 2009 over Q2 September 2008.
The company provides various kinds of sacks such as liner bags, valved bags, gussetted bags, hemmed bags, inside coated, box bags, bale wraps, mail bag, envelop bags, rubble sacks sand bags, zig zag mouthed, resin bags, paper-PE sandwich bags.
Atul gains as promoter revokes pledged shares
Friday 4th Dec-09
Atul rose 2.13% to Rs 84 at 12:55 IST on BSE, after one of the promoter group companies revoked a portion of shares which it had pledged earlier.
The company made this announcement after market hours on Thursday, 3 December 2009.
The stock hit a high of Rs 85 and a low of Rs 82 so far during the day. The stock had hit a 52-week high of Rs 90.50 on 1 October 2009 and a 52-week low of Rs 34 on 9 March 2009.
The company's equity capital is Rs 29.67 crore. Face value per share is Rs 10.
The current price of Rs 84 discounts the company's Q2 September 2009 annualized EPS of Rs 28, by a PE multiple of 3.
Aeon Investments, a promoter group company, has revoked 2.99 lakh shares representing 1.01% of the equity capital of the company out of 10.68 lakh shares representing 3.60% stake which it had pledged earlier.
Aeon Investments holds 6.62% of the equity capital of the company, whereas total promoter shareholding in the company is 40.26% (as on 30 September 2009).
Atul's net profit rose 16.7% to Rs 21 crore on 20.6% fall in net sales to Rs 274 crore in Q2 September 2009 over Q2 September 2008.
The company is engaged in the business of manufacturing dyes and dye intermediates, agro-chemicals, aromatic like para-Anisaldehyde, epoxy resins and pharma intermediates.
Atul rose 2.13% to Rs 84 at 12:55 IST on BSE, after one of the promoter group companies revoked a portion of shares which it had pledged earlier.
The company made this announcement after market hours on Thursday, 3 December 2009.
The stock hit a high of Rs 85 and a low of Rs 82 so far during the day. The stock had hit a 52-week high of Rs 90.50 on 1 October 2009 and a 52-week low of Rs 34 on 9 March 2009.
The company's equity capital is Rs 29.67 crore. Face value per share is Rs 10.
The current price of Rs 84 discounts the company's Q2 September 2009 annualized EPS of Rs 28, by a PE multiple of 3.
Aeon Investments, a promoter group company, has revoked 2.99 lakh shares representing 1.01% of the equity capital of the company out of 10.68 lakh shares representing 3.60% stake which it had pledged earlier.
Aeon Investments holds 6.62% of the equity capital of the company, whereas total promoter shareholding in the company is 40.26% (as on 30 September 2009).
Atul's net profit rose 16.7% to Rs 21 crore on 20.6% fall in net sales to Rs 274 crore in Q2 September 2009 over Q2 September 2008.
The company is engaged in the business of manufacturing dyes and dye intermediates, agro-chemicals, aromatic like para-Anisaldehyde, epoxy resins and pharma intermediates.
Unichem Lab strikes 52-week high
Unichem Laboratories surged 4.53% to Rs 278.10 at 13:46 IST on BSE, after the company's wholly owned unit Niche Generics received marketing authorization for Anastrozloe tablets for a number of markets within the European Union.
The company made this announcement during trading hours today, Friday 4 December 2009.
Meanwhile, the BSE Sensex was down 36.93 points, or 0.22%, to 17,148.75.
On BSE, 75,778 shares were traded in the counter as against an average daily volume of 17,571 shares in the past one quarter.
The stock hit a high of Rs 288 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 261.40 so far during the day. The stock had hit a 52-week low of Rs 132.15 on 6 March 2009.
The company's equity capital is Rs 18.02 crore. Face value per share is Rs 5.
The current price of Rs 278.10 discounts the company's Q2 September 2009 annualized EPS of Rs 37.68, by a PE multiple of 7.38.
Anastrozole tablet is used for treating breast cancer.
In early November 2009, Unichem Laboratories received approval from the US Food and Drug Administration (US FDA) for its bulk drug facilities at Pithampur, Madhya Pradesh, and Roha, Maharashtra. US Food and Drug Administration has already approved the company's formulation facilities in Goa and Ghaziabad
Unichem Laboratories had in August 2009 received approval from US FDA for Clonidine Hydrochloride tablets in multiple strengths. The drug is used for treating hypertension. The drug is the generic version of Boehringer Ingelheim's Catapres tablets.
Unichem Laboratories' net profit declined 3.1% to Rs 33.97 crore on 0.8% fall in net sales to Rs 173.28 crore in Q2 September 2009 over Q2 September 2008.
Unichem Laboratories is engaged in manufacturing and marketing pharmaceutical formulations, bulk drugs and drug intermediates.
The company made this announcement during trading hours today, Friday 4 December 2009.
Meanwhile, the BSE Sensex was down 36.93 points, or 0.22%, to 17,148.75.
On BSE, 75,778 shares were traded in the counter as against an average daily volume of 17,571 shares in the past one quarter.
The stock hit a high of Rs 288 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 261.40 so far during the day. The stock had hit a 52-week low of Rs 132.15 on 6 March 2009.
The company's equity capital is Rs 18.02 crore. Face value per share is Rs 5.
The current price of Rs 278.10 discounts the company's Q2 September 2009 annualized EPS of Rs 37.68, by a PE multiple of 7.38.
Anastrozole tablet is used for treating breast cancer.
In early November 2009, Unichem Laboratories received approval from the US Food and Drug Administration (US FDA) for its bulk drug facilities at Pithampur, Madhya Pradesh, and Roha, Maharashtra. US Food and Drug Administration has already approved the company's formulation facilities in Goa and Ghaziabad
Unichem Laboratories had in August 2009 received approval from US FDA for Clonidine Hydrochloride tablets in multiple strengths. The drug is used for treating hypertension. The drug is the generic version of Boehringer Ingelheim's Catapres tablets.
Unichem Laboratories' net profit declined 3.1% to Rs 33.97 crore on 0.8% fall in net sales to Rs 173.28 crore in Q2 September 2009 over Q2 September 2008.
Unichem Laboratories is engaged in manufacturing and marketing pharmaceutical formulations, bulk drugs and drug intermediates.
Tuesday, December 1, 2009
China wants to buy 10,000 tons of gold!
China Should Boost Gold Reserve Holdings, Youth Daily Reports
Nov. 30 (Bloomberg) -- China should increase the amount of gold it holds in
reserves to reduce potential losses from a depreciating dollar, the China
Youth Dailysaid
today, citing Ji
Xiaonan,
head of the supervisory committee at the state-owned Assets Supervision and
Administration Commission.
“We recommend China increase its gold reserves to 6,000 metric tons within
three-to-five years and possibly to 10,000 tons in eight to 10 years,” the
paper quoted Ji as saying. China increased its gold reserves by 76 percent
to 1,054 tons since 2003, the official Xinhua News Agency reported in April.
China is likely to become the world’s largest producer and consumer of gold
this year, Rozanna
Wozniak,
investment research manager at the World Gold Council, said yesterday. The
dollar has fallen about 20 percent against the euro since Feb. 18. Dubai
World’s possible default may give China an opportunity to invest its foreign
currency reserves in the metal and oil, Ji said in a separate report by the
Economic Information Daily.
“Given the size of their reserves compared with the size of the gold market,
there’s a limit on how much they can add,” David
Barclay,
commodity strategist with Standard Chartered Bank in Hong Kong, said today.
“But it certainly seems that there’s scope for further addition.”
Ji said that the recommendation to buy gold was made by an unidentified
group of experts who had convened since last year to discuss the issue, the
Youth Daily reported.
Record Prices
The nation increased its reserves to 1,054 tons through domestic purchases
and refining scrap metal, Hu
Xiaolian,
head of the State Administration of Foreign Exchange, said in an interview
with the Xinhua News Agency in April.
China may break records for both demand and output this year as jewelry
consumption soars and miners expand production after prices reached all-time
highs, Zhang Yongtao, deputy secretary-general of the China Gold
Association,
said at a conference in Kunming yesterday.
Bullion touched a record $1,195.13 an ounce Nov. 26 as a weaker dollar drove
demand for precious metals as an alternative asset. Gold declined 0.4
percent to $1,172.43 an ounce at 2:23 p.m. in Shanghai.
Some of China’s foreign exchange reserves should be swapped into gold, which
would lessen losses from a depreciating U.S. dollar, the China Youth Daily
said, citing Ji. China is underweight on holdings and will increase buying
as the economy expands, said Jeffrey
Rhodes,
chief executive officer of INTL Commodities DMCC, Oct. 23.
China’s 1,054 tons of gold represent less than two percent of its reserves,
Dubai-based Rhodes said then. That compares with the international average
of 10.2 percent held by central banks worldwide which have under 30,000 tons
of the metal, equivalent to about $960 billion.
The country may not find it “very necessary” to purchase bullion for its
reserves after the price rose above $1,000 an ounce, Zhang Yuyan, an
economist at the Chinese Academy of Social Sciences, said Nov. 5.
from another forum
Nov. 30 (Bloomberg) -- China should increase the amount of gold it holds in
reserves to reduce potential losses from a depreciating dollar, the China
Youth Daily
today, citing Ji
Xiaonan
head of the supervisory committee at the state-owned Assets Supervision and
Administration Commission.
“We recommend China increase its gold reserves to 6,000 metric tons within
three-to-five years and possibly to 10,000 tons in eight to 10 years,” the
paper quoted Ji as saying. China increased its gold reserves by 76 percent
to 1,054 tons since 2003, the official Xinhua News Agency reported in April.
China is likely to become the world’s largest producer and consumer of gold
this year, Rozanna
Wozniak
investment research manager at the World Gold Council, said yesterday. The
dollar has fallen about 20 percent against the euro since Feb. 18. Dubai
World’s possible default may give China an opportunity to invest its foreign
currency reserves in the metal and oil, Ji said in a separate report by the
Economic Information Daily.
“Given the size of their reserves compared with the size of the gold market,
there’s a limit on how much they can add,” David
Barclay
commodity strategist with Standard Chartered Bank in Hong Kong, said today.
“But it certainly seems that there’s scope for further addition.”
Ji said that the recommendation to buy gold was made by an unidentified
group of experts who had convened since last year to discuss the issue, the
Youth Daily reported.
Record Prices
The nation increased its reserves to 1,054 tons through domestic purchases
and refining scrap metal, Hu
Xiaolian
head of the State Administration of Foreign Exchange, said in an interview
with the Xinhua News Agency in April.
China may break records for both demand and output this year as jewelry
consumption soars and miners expand production after prices reached all-time
highs, Zhang Yongtao, deputy secretary-general of the China Gold
Association
said at a conference in Kunming yesterday.
Bullion touched a record $1,195.13 an ounce Nov. 26 as a weaker dollar drove
demand for precious metals as an alternative asset. Gold declined 0.4
percent to $1,172.43 an ounce at 2:23 p.m. in Shanghai.
Some of China’s foreign exchange reserves should be swapped into gold, which
would lessen losses from a depreciating U.S. dollar, the China Youth Daily
said, citing Ji. China is underweight on holdings and will increase buying
as the economy expands, said Jeffrey
Rhodes
chief executive officer of INTL Commodities DMCC, Oct. 23.
China’s 1,054 tons of gold represent less than two percent of its reserves,
Dubai-based Rhodes said then. That compares with the international average
of 10.2 percent held by central banks worldwide which have under 30,000 tons
of the metal, equivalent to about $960 billion.
The country may not find it “very necessary” to purchase bullion for its
reserves after the price rose above $1,000 an ounce, Zhang Yuyan, an
economist at the Chinese Academy of Social Sciences, said Nov. 5.
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