The Hindu Business Line : Revamp talk lifts India Foils

STERLITEe group outfit India Foils spurted on Wednesday on talk of financial restructuring. The stock closed 20 per cent up on the NSE at Rs 16.50 with over15 lakh shares traded.

According to market sources, the promoter group is said to be cleaning up the balance sheet of the company through loan restructuring arrangement with IDBI.

A "buy" recommendation from a leading brokerage with big clientele has also prompted the purchase spree in the counter.

Investors see exit opportunity in Pentasoft Tech

Pentasoft Technologies, which is proposed to be merged with the Kolkata-based Silicon Valley Infotech saw huge traded volumes on Wednesday. On the NSE alone, over 78 lakh shares changed hands.

According to dealers, a set of operators mopped up the stock at around Rs 3 each as the retail investors, who are stuck for long in the counter, exited.

The proposed swap - for every two Rs 10 shares of Pentasoft, one share of Re 1 each of Silicon Valley - is distinctly unfavourable for small shareholders. The public shareholding in Pentasoft (as on December 31, 2004) is placed at 76.07 per cent while promoter's holding is stated to be just 2.08 per cent.

Market sources said the current buying could be linked to acquisition of stake in the to-be-merged entity. In the process, the Pentasoft Tech closed 17.54 per cent up at Rs 3.35. Incidentally, the Silicon Valley stock also moved up 4.44 per cent to finish at Rs 5.41 on the BSE.

VBC Ferro gains on demand hopes

THE VBC Ferro Alloy stock on Wednesday witnessed frenzied buying to hit a new 52-week high at 144.70 on the BSE. The active buying was due to the expectation of unaffected demand increase.

According to brokers and dealers, signals that the steel industry and its consumer industries are likely to announce higher prices have removed the apprehension over demand slow down. Capacity expansion, backward integration in power and increasing exports margins were already being factored in the stock, analysts said.

The concern over margins in the domestic market had somewhat been a drag for an aggressive growth discounting, they felt.

Jayanta Mallick

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