Financial Daily from THE HINDU group of publications
Thursday, Dec 09, 2004
Financial Daily from THE HINDU group of publications Thursday, Dec 09, 2004 |
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Markets
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Stock Markets As SEBI deadline nears on promoters' holdings — Dabur Pharma witnesses sharp spurt in activity Jayanta Mallick
Kolkata , Dec. 8 THE Dabur Pharma stock is in the market buzz off late as the company grapples with the deadline for reduction in promoters' holding. SEBI has ruled that the promoters, including person acting in concert, have to bring down their holding to 75 per cent of the total paid up capital of the company by December 31, 2004. Currently promoters' stake in the company is around 78.27 per cent. According to the management, early this year the company had given mandate to Citibank to evaluate "equity-related financing options to meet funding requirement," particularly for Dabur's "global ambition" in the area of oncology and R&D efforts. Sources close to the exercise told Business Line that to meet the deadline for reduction of promoters holding, private placement possibilities are also being explored so that the paid up capital could be raised. According to market sources, pricing being the key to divestment or a new issue, a section of the operators are testing valuation possibilities through the current run in the counter. The stock today created its new high at Rs 62 before finishing at Rs 60 with over 20 lakh shares traded on the BSE and the NSE. Today's closing price marks over 100 per cent rise from its low (since listing) of Rs 27. According to Mr Shashin Upadhyay of Anagram Stockbroking, at Rs 60, the stock traded at 37.5 times its estimated FY05 earnings per share of Rs 1.60 and 4.2 times its book value for FY04. The company has strategic tie-up with Abbott Laboratories for marketing its oncology products in the US. It is also attempting such an alliance for the European market.
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