Financial Daily from THE HINDU group of publications
Tuesday, Mar 12, 2002
Financial Daily from THE HINDU group of publications Tuesday, Mar 12, 2002 |
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Markets
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Stock Markets Hitech Drilling up on open offer hope Jayanta Mallick
KOLKATA, March 11 THE counter of Hitech Drilling Services India Ltd is of late seeing heightened activity and a northward price spiral. According to market players, the buoyancy can be attributed to the merger of the Mumbai-based Hitech with the Chennai-based Aban Loyd Chiles Offshore Ltd and the Budget boost for the infrastructure sector. Hitech Drilling has a long-term contract with ONGC for supply of equipment. The scrip closed on Monday at Rs 55.45 (Rs 51.35) on the Bombay Stock Exchange and at Rs 56 (Rs 52.30) on the National Stock Exchange. On last Thursday, it had closed at Rs 48.50 on BSE and 48.75 on NSE. The 52-week high of the scrip is around Rs 91 and low is about Rs 28. Over 8,000 shares were traded on NSE on Monday, while on the BSE its volume was of the order of about 2000 shares, a marked improvement of the average combined traded volume of around 2000 shares on both the NSE and BSE. The merging companies had informed the stock exchanges last week that the Bombay High Court and the Madras High Court had approved the respective amalgamation schemes. For every five fully paid-up equity share of Rs 10 each of Hitech, two fully paid equity shares of Rs 10 each of Aban Loyd will be allotted, according to the scheme. The Aban scrip is hovering around Rs 50 on major bourses. "The market is expecting a better dividend from Hitech as also better results for the forthcoming issue. But what is driving the price of Hitech is the possibility of an open offer by the new acquirer,'' said a NSE broker. Aban Loyd already holds around 86.5 per cent stake in Hitech. The promoter stake in Hitech was acquired by Aban Loyd at Rs 92 per share. It had also promised to buy out the other shareholders. "Since the amalgamation process is over, the market is expecting that the open offer would be round the corner and the price would be at around the level of around Rs 90," a BSE broker pointed out.
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