Business Daily from THE HINDU group of publications
Tuesday, Aug 22, 2006
Business Daily from THE HINDU group of publications Tuesday, Aug 22, 2006 |
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Markets
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Stocks Corporate - Mergers & Acquisitions Shailesh Menon
Mumbai , Aug. 21 Rumours of a `mega' acquisition have seen the share price of Asian Electronics Ltd (AEL) gain significantly on the bourses in the recent past. The stock of AEL, which ended at Rs 491.90 (up 7.98 per cent) on the BSE on Monday, has appreciated by almost 78 per cent month-on-month. The stock price has shot up 20.67 per cent in over a week's time. The average cumulative trading volume during the last fourteen days is 1,14,923 shares on the BSE. Market talk has it that the company is working out some major acquisition plans to be effected in the near future. Top officials of the company, however, refuted the rumours of the acquisition.
More orders
"AEL has finalised the acquisition of a considerable stake in the US-based Westinghouse Lighting Corporation. The company has also received an order for its power-saving devices from an overseas biggie," said a stock market analyst. The Rs 170-crore AEL has bagged orders from six municipal corporations in the country to take up street-lighting works. The company replaces existing lights (in some cities) and manages the new system (including the maintenance) to offer up to 60 per cent reduction in power consumption. "Our forte is in having a manufacturing unit to source our projects. We have several lighting projects in the pipeline. Our professional lighting wing is engaged in providing lighting solutions to major retailing hubs in the country. In short, our fundamentals are very strong," said Mr Jinendra Shah, Executive Director, AEL.
`Steady mover'
The company has also received an order from Maharashtra State Electricity Distribution Co Ltd for testing and commissioning of transmission and distribution lines in the Aurangabad zone. AEL's promoters hold about 43 per cent shares of the company. Among its institutional investors are, Reliance Capital Trustee Company Ltd (through Reliance Diversified Power Sector Fund) with a four-per cent stake and Citi Group Global Markets Mauritius Pvt Ltd, an FII, accounting for 1.25 per cent in total share holdings. "While the AEL stock is a steady mover when the market is good, it plummets at the slightest negative trigger. The stock is good for long-term investment,'' said a stock market analyst.
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