Monday, December 14, 2009

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.

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