Financial Daily from THE HINDU group of publications
Saturday, Mar 05, 2005
Financial Daily from THE HINDU group of publications Saturday, Mar 05, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground Open offer hopes drive it up
THE Maharashtra Scooters Ltd stock on Friday touched its 52-week high at Rs 200 along with a surge in traded quantity on the bourses. According to dealers, the arbitration process between the two joint promoters over the price (of one's stake to be bought over by the other) is over. The market is expecting the final decision next week. The unconfirmed news doing the rounds on the Dalal Street was that the price for 27 per cent stake of the Western Maharashtra Development Corporation settled through arbitration was significantly higher than offered earlier by Bajaj Auto, the co-promoter with a 24 per cent stake. Further, the street talk was that arbitrator may suggest an open offer at the price Bajaj Auto would take the stake from WBMDC, a Maharashtra Government body. Under the SEBI rules, however, the stake sale by a Government body to a co-promoter is exempt from the automatic open offer clause under the takeover norms. Possibility of open offer does provide a revaluation opportunity as the valuation of the stock, considering MSL's investment in Bajaj Auto, should be more than Rs 400 each, according to dealer. Incidentally, the public holding in the MSL is placed at over 35 per cent.
Sunflag active on dividend hopes THE Sunflag Steel stock has been on the move on expectation of a first ever dividend. Though the Nagpur-based steel roll maker has been reporting net profits, it has never declared any dividend. During the three quarters to December 31, 2004, the company reported a net profit of Rs 26.63 crore against a net profit of Rs 8.48 crore recorded in the 2003-04. According to brokers, the dividend expectation was between 5 and 15 per cent for the 2004-05. The stock started inching up in the recent weeks following strong demands for steel. The stock hit its 52-week of Rs 19.50 on February 10 and has of late been ruling on active trade in the range between Rs 17 and Rs 19. The 31.52-per cent stake public holding points to substantial retail interest in the stock.
Fluctuating fortunes of JCT Electronics The stock of JCT Electronics, which recently resumed operation at its unit at Mohali after a prolonged labour problem, has been witnessing heightened activity over its chances of revival. According to dealers, the counter is seeing a see-saw over the fluctuating fortunes of the company. Perception over the prospect turned positive following reopening of the unit. The stock shot up to its 52-week of over Rs 16. But the claim made by a foreign bank for dues has created jitters among retail holders and traders, prompting a selling spree, dealers observed. Today the stock closed 4.24 per cent lower at Rs 11.30.
Jayanta Mallick
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