The Hindu Business Line : Cipla gains on bonus talk

Dealers said the accumulation was due to talk that the company plans bonusin the ratio of one share for every two shares held. According to dealers, the last bonus issue by Cipla was in 1998.

Another factor for the likely issue of bonus shares is lower equity base of Rs 60 crore compared to other pharma companies such as Ranbaxy and GlaxoSmithkline Pharma. This was the key reason for the rise in the stock price.

On Wednesday, Cipla gained 3.44 per cent at Rs 1,317.25 on the BSE with a volume of 1.12 lakh shares and on the NSE, it closed at Rs 1,319.20, up 3.63 per cent with a volume of 2.21 lakh shares.

Stock split

JUST ahead of the disinvestment of the Government stake in Oil and Natural Gas Corporation (ONGC), stock split for the company's shares is being talked of.

The market buzz is that the Rs 10 share may be split into Rs 2 face value share. Dealers said this might happen before the public issue in the current financial year. The main factor for the stock split is the current market price of the company's shares at around Rs 800. In case a small investor wants to subscribe to ONGC shares, it would be difficult for them due to costs. However, if the shares are split into Rs 2 face value, the stock price would be one-fifth of the current price and easy on the pocket of investors who go in for IPO. Other than this, the stock split would also increase liquidity in the shares of the company and get better valuation, dealers said.

On Wednesday, the stock of ONGC gained 2.25 per cent at Rs 799.50 on the BSE with a volume of 4.35 lakh shares and on the NSE, it closed at Rs 795.50, up 2.23 per cent with a volume of 9.06 lakh shares.

`Mad cow' boon

THE fear of mad cow disease in the US is likely to be positive factor for soyabean producing companies. Among the Indian companies that are likely to benefit the most is Ruchi Soya.

The talk is that the demand for soyameal will go up due to ban on meat products in the wake of mad cow disease. In addition, the rise in international prices for soyabean is also bringing interest in the counter.

On Wednesday, the stock gained 10 per cent at Rs 121.55 on the BSE with a volume of 59,502 shares and on the NSE, it closed at Rs 121, up 8.33 per cent, with a volume of 89,263 shares.

Virendra Verma

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