Financial Daily from THE HINDU group of publications
Wednesday, Sep 08, 2004
Financial Daily from THE HINDU group of publications Wednesday, Sep 08, 2004 |
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Markets
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Stock Markets Jupiter Bioscience flares up on stake sale talk Deeptha Rajkumar
Mumbai , Sept. 7 RUMOURS of an alliance in the offing have put the stock of Jupiter Bioscience back onto the market radar on the bourses. The stock, which has been subject to bouts of volatility in the recent past, is seeing renewed investor interest. The counter has appreciated by almost 16 per cent from around Rs 93.50 levels as on August 2. Word on the street is that Reliance LifeScience is likely to pick up a stake in the company. Ever since the company has made clear its intentions of acquiring a partner, there has been considerable amount of speculation in the market as to the timing and the choice of partner. While initially there was talk of some US-based MNC picking up a stake, recent rumours peg Reliance LifeScience as a favourite. "If they really want to capitalise on their peptide directory, they need a facility in place. For this to happen they will have to either come to the market or rope in a strategic investor," industry sources said. Reportedly the company does not have an FDA approved facility. Jupiter Bioscience is one of the very few companies in India to have developed expertise in peptide chemistry and 40 per cent of its turnover is from peptides. It is also into drug intermediates and speciality chemicals. Reliance LifeScience is predominantly into stem cell research. A section of the market, however, chose to sit on the fence with regard to the current rumours. "There is no synergy between the two companies. They follow different routes," commented a market source. However, many others are of the opinion that such a tie-up could be a possibility. "There is every reason to believe that Reliance is expanding its therapeutic profile. So why not Jupiter Bio," queried an analyst tracking the company. According to brokers, the grapevine is abuzz with talk that Jupiter Bio is likely to place shares at around Rs 200-Rs 250 levels and the strategic partner may well pick up 25-30 per cent of the equity. Analysts, however, maintain that the company's numbers are not so `exciting'. "The global peptide market is $7 billion. If the company was doing so well, the turnover would reflect that," a source added. The stock ended firm at Rs 108.55 on the BSE with around 2.38 lakh shares traded. The stock is not listed on the NSE.
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