The Hindu Business Line : Betting on promoters' move

LOSS making and cash strapped Bhageeratha Engineering's promoters are understood to be looking for strategic partners to raise funds to serve its orders.

According to market sources, the company has orders worth over Rs 650 crore in its kitty. Going by market talk, the promoters want to raise Rs 20-25 crore and are ready to shell out around 30 per cent equity stake in the company.

Dealers said that a set of investors is looking at this development as an opportunity for making a trading call. If the management is able to raise the funds and start serving the orders, the fundamentals of the company are likely to improve feels broker.

The stock went up by 8.4 per cent to close at Rs 28.90 on the BSE on Monday with 11825 shares being traded.

Gains on Dubai project

THE Financial Technologies stock, which has seen rallies in the recent past on various triggers such as preferential allotment to overseas investors T Rowe Price and Goldman Sachs at Rs 262 (face value Rs 2), is now moving on a new bet on prospects of an ambitious joint venture with the Dubai government's Dubai Metal & Commodity Centre.

Though the initial agreement was signed in November last, work on the commodity exchange project began recently and is reportedly gathering momentum.

Financial Technologies, its promoters and its subsidiary MCX are supposed to have taken up 50 per cent stake in the Dubai project, which is proposed to be one of the biggest commodity exchanges in the world.

According to dealers, the under-detailed developments for Financial Technologies, put through expansion and diversification into newer segments of the commodities and financial markets as also global arena, has prompted a section of market players to place fresh bets keeping medium to long term perspective in view.

The stock moved up 1.44 per cent to close at Rs 275.3 on the BSE with a trading volume of 30,718 shares.

Up on stake sale talk

The Jagatjit Industries on Monday gained by around five per cent to close at Rs 42.45 on talk that the promoters want to exit the company and are searching for buyers.

According to market sources, the talk hovered around the theme that liquor businesses are targets for acquisition on enhanced valuation. However, no confirmation or denial could be had from sources close the promoters or management.

Jayanta Mallick

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