THE Advik Laboratory stock on Thursday was a buzz among a section of investors on the Street over the talk of a reverse merger. The counter moved up 11.23 per cent with a traded volume of 5.21 lakh shares on the BSE.
According to markets sources tracking the development, an unlisted entity, with a new drug discovery to its credit, is said to have offered to join hands with Advik. The process of formalising the deal is expected shortly, which is to improve operations of both the Hyderabad-based companies.
Advik had reported losses in the first and second quarters but recovered in the third and fourth quarters of 2004-05.
The reason for the reverse merger is understood to be for meeting the net worth requirement for listing of the new amalgamated entity.
Advik has a paid-up capital of Rs 9.35 crore.
KG Denim turns bullish on order talkKG Denim on Thursday moved up on the reported prospect of a jump in its sales turnover. According to dealers, the company is understood to be close to clinching a long-term deal for supply of cotton jeans to Wall-Mart. This is rumoured to be a bulk deal albeit with a tighter margin. But volumes are so significantly high that on the whole it is expected to impact the bottomline of the company positively in future, feels broking community.
Analysts pointed out that softer cotton price and sales of its branded jeans in the domestic market have been boosting the company's fundamentals.
The stock moved up by 2.04 per cent with a traded quantity of 1.99 lakh shares on the BSE on Thursday.
FCCB buzz pushes Hikal Ltd up Hikal Ltd counter was on the move on talk of its as yet announced plan to raise capital overseas. According to market sources, the company is said to be thinking of raising around $20 million, either through foreign currency convertible bonds or through placement of shares.
The board of directors is likely to take a view soon on the issue, according to corporate sources. According to indications, the details of pricing of the issue would be taken up later.
To part-fund its expansion plans, the company is looking towards overseas investors.
The stock finished at Rs 440.35, with a gain of 4 per cent after creating a new 52-week high at Rs 450 on the BSE.