Financial Daily from THE HINDU group of publications
Friday, Feb 22, 2002

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Kotak Mahindra up on conversion hopes

Virendra Verma

NON-banking finance company Kotak Mahindra Finance was locked in the 20-per cent upper circuit on Thursday. The aggressive buying in the last few days was mainly on expectation that a foreign bank may take equity stake in the company once it converts itself into a bank.

Though the company is yet to come out with its plans on conversion into a bank, market players are hopeful that this will happen shortly. A section of the market participants feels that the stock may be re-rated once it converts itself into a bank with equity from a foreign bank/investor. The recent RBI notification allowing FDI in private banking sector up to 49 per cent has spurred interest in the stock.

The stock closed the day at Rs 113.90 on the BSE and at Rs 114.85 on the NSE, the new 52-week highs for the stock.

FDI talk lifts Mid-Day Multimedia

MID-Day Multimedia was active on expectations that the Government might allow FDI investments in print media. A number of market players were seen actively buying the stock. Dealers say that the stock is likely to be re-rated if the Government takes a positive decision. (However, in New Delhi, the Prime Minister Office spokesperson denied any such move). The company's IPO had run into trouble due to FII investments in the public issue. Later, the FII investments in the IPO were withdrawn. However, it is expected that the Government may lift the ban this time.

In the last two days, the stock has risen20 per cent. On Thursday, it closed at Rs 33.40, up 11.15 per cent on the BSE with volumes of 6.49 lakh shares. On the NSE, it ended 10.73 per cent higher at Rs 33 with volumes of 6.49 lakh shares.

Hinduja TMT on fund managers' list

AFTER e-Serve International, another IT-enabled services company, Hinduja TMT, has been active in the market. The stock has gained over 28 per cent in the last three sessions. In fact, the future prospects of IT-enabled business and the focus of the company in this area have led a number of fund mangers to buying into the stock. The recent rally was mainly on account of fund managers' backing. On Thursday, Hinduja TMT ended 6.86 per cent higher at Rs 227.35 on the BSE.

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