Financial Daily from THE HINDU group of publications
Thursday, Aug 11, 2005
Financial Daily from THE HINDU group of publications Thursday, Aug 11, 2005 |
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Markets
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Stock Markets Columns - Ear to the ground TTK Prestige up on biz expansion hopes
The company, whose main line of business is manufacturing and marketing of pressure cookers, is understood to be entering the modular kitchen segment. With the spurt in demand for high-end housing and interiors, speculation that a significant chunk of future revenues could come from this line of business has been doing the rounds of the capital market. The stock jumped 10 per cent on both the exchanges on Wednesday. On the NSE, it closed at its 52-week high of Rs 113.45. The annual general meeting of the company is to be held on August 23. Dealers say that the expansion announcement could be made then.
Unlocking value - a maze for FIIs? The swap ratio announced by Reliance has put some foreign institutional investors in a spot. According to the announcement, every 100 shares in Reliance Industries Ltd will fetch shareholders five shares of Reliance Capital Services, seven shares of Reliance Energy Ltd, 100 shares of Global Fuel Management Services Ltd and 100 shares of Reliance Communications Ventures Ltd. As per their internal regulations, several foreign institutional investors are not allowed to hold unlisted securities. This implies that those FIIs who have this restriction will not be able to hold shares of Global Fuel Management Services and Reliance Communication Ventures. Making an exception to this is a tedious process requiring shareholder approval and global management of these FIIs will not take this route for investment in one company. Though Reliance has said that these two instruments would be listed by March 31, 2006, how these can be held in the interim is of concern to these FIIs. Market sources say the "unlocking of shareholder value" post the announcement of the swap ratio has rendered the stock of Reliance Industries less valuable to some of these FIIs. Reliance on Wednesday gained 1.67 per cent on the NSE at Rs 719.45 on Wednesday 73.02 lakh shares being traded.
Veena Venugopal
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