Financial Daily from THE HINDU group of publications
Friday, Feb 15, 2002
Financial Daily from THE HINDU group of publications Friday, Feb 15, 2002 |
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Markets
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Commentary Columns - Ear to the ground ICICI, ICICI Bank up on private placement talk
AHEAD of the actual merger of ICICI and ICICI Bank, share prices of both the companies were locked in the 10-per cent upper circuit on Thursday. The ICICI stock ended at Rs 54.55 on the BSE and at Rs 54.60 on the NSE while ICICI Bank closed at Rs 115.50 and at Rs 114.85 respectively. The market talk is that post-merger, the special purpose vehicle (SPV) for ICICI stake would be sold either to a private equity fund or a strategic investor. The price for the sale of stake, post-merger, is expected to be around Rs 150 per share. In addition, the market is expecting the group to divest its stake in some of its investment, especially in private sector banks. This would also bring cash inflow.
NLC gains on buyback hopes
NEYVELI Lignite Corporation (NLC), recently included in the PSU disinvestment list, is being actively traded by market players. The NLC stock has already gone up from Rs 12 to the current closing price of Rs 19.65 on the BSE. Apart from disinvestment hopes, the stock has been bought on expectations of a buyback proposal from the company. The buyback would reduce the huge equity capital of Rs 1,677.70 crore and give better valuation before the actual disinvestment. The buyback would also help the Government garner some funds as in the case of VSNL.
Indo-Gulf sees institutional backing
THE Aditya Birla group company, Indo-Gulf Corporation, stock has been actively accumulated by institutional investors in recent times. Dealers said the rise in international copper prices, possible changes in the fertiliser policy and the company's subsidiary, jetty, expecting a break-even shortly are adding to the interest in the stock. In the past few days, a lot of institutional buying was seen in the counter and this has led to the stock rising steadily from Rs 41 to the current level of Rs 48.30 (on the BSE). On the NSE, it ended 3.41 per cent higher at Rs 48.565.
Virendra Verma
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