Rathi Bar IPO Allotment Status
The allotment status of Rathi Bars IPO can now be checked here. Grey market premium as on 19-11-2007 was Rs 2.
BUY Shree Ganesh Forging Ltd – HDFC
HDFC Securities is bullish on the prospects of Shree Ganesh Forgings Ltd [SGFL]. They recommend to Buy at CMP & add on declines in the price band of Rs. 95-100.
SGFL manufactures a wide range of forgings including flanges & fittings catering mainly to industries like Oil & Gas, Petrochemical & Pharmaceutical, which together account for almost 75% of the total revenues. Through the recent 100% acquisition of profitable companies viz; Hertecant (European manufacturer of flanges & fittings), & ELFE, France, SGFL’s sales & PAT could improve significantly & improve its overall global presence. SGFL is in the process of doubling its forging capacities from 11,000 MT to 22,800 MT at the existing location at Pawne, Navi Mumbai, by installing two new forging press lines of 2,500- MT press & 4,000- MT press, & an addition of 48 Automated CNC robotic machining lines, which will increase the machining capacity by 300%. (more…)
Gitanjali Acquires Rogers in US
Gitanjali Gems has acquired Rogers, a retail jewelry chain in United States. The company has acquired 100% stake in this specialty retailer, which operates 46 stores in US with current revenues equivalent to US $ 80 million. Rogers Inc. is headquartered in middletown, Ohio and operates under brand names rogers jewelers and andrews jewelers.
This acquisition by Gitanjali in organized US jewellery market is a landmark step for the industry and a significant step towards moving up the industry value chain, which will offer a range of synergies to Gitanjali’s existing operations. Gitanjali will not only have access to a large US consumer base, but leveraging Rogers’ existing retail infrastructure will give Gitanjali a better control over the entire value chain in the jewelry business.
By way of this acquisition Gitanjali has taken one more step ahead in the direction of getting control over in the value chain, which will boost the company’s plans to expand its retail presence in India and overseas.
Jai Corp equity shares issue
Mukesh Ambani’s friend Anand Jain’s company Jai Corp has suddenly risen on the Streets with backing from RIL, mainly for SEZ projects.
The members of Jai Corp have approved to issue of 59,10,610 fully paid-up equity shares of face value Re 1 each at a premium of Rs 1,034 each on preferential / private placement basis.
The members have approved to issue 1,50,00,000 fully paid-up preference shares of face value Re 1 each at a premium of Rs 99 each on preferential basis to promoter group.
We don’t understand the differential pricing between the promoter group and private placement. Come on its a Ambani backed company, have you forgotten how Mukesh, Paramod Mahajan and his friends got Reliance Infocomm shares at Rs 1 each 🙂
BUY Everest Kanto – Citi
Citigroup Research has re-initiated coverage on Everest Kanto Cylinders with a BUY rating on the back of new expansion plans announced by the company.
Besides the Dubai expansion (recently commenced) and China greenfield plant (to start next Quarter),EKC plans to: (1) expand the Gandhidham facility (0.2m industrial cyl/yr), (2) set up a greenfield plant at Kandla SEZ (0.3m CNG cyl/yr), and de-bottleneck Tarapur. Total capex envisaged is c.US$50m. The company has recently raised ~US$57m through an FCCB and private placement. All these expansions are positive as they diversify two key risks – RM supplies and the China market.
Citi adjusts FY08E earnings by 3% and significantly revise FY09-10E (more…)
Indiainfoline bullish on Voltas
Last month we had coverage on VOLTAS Ltd by Citigroup and Edelweiss. Now Indiainfoline has upgraded the stock on the back of strong order backlog.
Voltas’ order book of Rs27bn for its electro-mechanical division ensures healthy revenue growth for next two years. Expect the electro-mechanical division revenues to witness 41.5% CAGR over FY07-09E driven by higher infrastructure spending in Middle East and boom in retail, IT and entertainment sector in domestic market. (more…)