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VYBRA Automet, an auto component and forging company that is coming out of BIFR ambit from April 1, saw its share price gaining 7.38 per cent on Wednesday to close at Rs 65.50 on the BSE.

According to market sources, the primary driver for the valuation was the pricing of loans worth Rs 1.84 crore into equity to the promoters.

The promoters had to pump in interest-free loan into the company to bail it out of the past financial crisis. The promoters are understood to be planning to convert the loan into equity at a price of Rs 100 each. According to sources close to the management, the company has deferred its earlier plan for conversion at par.

"After April 1, 2005, it would have to use the SEBI formula for pricing. This will also indirectly benchmark the market price," the source said.

Value `buy' pushes up Sonata Soft

THE Sonata Software stock on Wednesday moved up by 7.24 per cent to close at Rs 23.70 with surge in volumes.

According to dealers, the stock is subjected to aggressive market making by a large broking firm with substantial clientele. Its recent "buy" recommendation follows a meeting with the management and suggested improvement in margin, net profit and turnover in the next two fiscals. After factoring in both negatives and positives - such as usual fiscal end bonus to its employees, the recent 3-year deal with Microsoft, capacity, infrastructure and staff additions - the broking firm concluded that the fair valuation of the stock (using DCF model) could be around double the current price.

Spurts on order talk

THE Shree Rama Multi-Tech stock price on Wednesday spurted by around 20 per cent on bourses to finish at Rs 19.10 over unconfirmed news of a big order from HLL.

According to dealers, a section of market players was reportedly bullish on the counter over an order worth Rs 50 crore from the FMCG major.

The debt-ridden company is yet to thrash out a scheme of compromise and arrangement with its secured creditors. A Gujarat High Court-convened meet of the creditors with first charge last week for considering modification of terms and conditions was adjourned to April 6. Creditors with second charge, however, agreed to the modifications. Meeting with creditors having a third charge on the company's assets has been stayed by the Court. The restructuring of debt is crucial for the company's financial health.

Jayanta Mallick

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