The Hindu Business Line : HFCL jumps on acquisition talk

Is one of the largest global private equity funds, backed by an international bank, taking a significant stake in HFCL? According to market sources, the target acquisition price is double the Friday's closing price of Rs 23.25.

Promoters, as on March 31, 2005, held roughly three per cent, ICICI Bank 8.45 per cent and the public about 58 per cent and private corporate bodies 25 per cent in HFCL.

The counter's BSE two-week average volume is 1.14 crore shares. It was up 3.56 per cent on Friday.

Market sources pointed out that as New Delhi has signalled to the foreign telecom equipment players to bring down their imports and have local manufacturing outfit, HFCL has been assumed to be one of the possible takeover targets.

ITI, the PSU telecom equipment maker, is also recording a volume surge recently, largely through bulk deals.

The stock on Friday created a new 52-week high and finished with a gain of 8.45 per cent.

Rights buzz adds more shine

GOA Carbon on Friday scaled a new year-high price on the BSE at Rs 167.85 on the market buzz that the company is likely to reward the existing shareholders by way of rights issue at a low premium.

The board is meeting on July 23 to consider capital issue and the results for quarter ended on June 30, 2005.

However, the quantum of the issue and the price were not mentioned in the agenda, as indicated to the stock exchanges.

According to analysts, the company is expected to announce markedly improved results in view of a rise in price of its finished product calcined petroleum coke and lower freight cost in the last few months.

The counter closed higher by 19.44 per cent at Rs 167.10 with a traded quantity of 2.93 lakh shares on the BSE.

Betting on prospects

SPANCO Telesystems, a BPO unit, with an array of overseas and domestic clients, is moving up on sales and profitability growth prospects as also a probable strategic stake sale buzz.

The company is now having 4000-seater outfit and its client list includes Hindustan Lever and ICICI Bank.

The stock closed 6.71 per cent higher at Rs 89.05 on the BSE against Thursday's close of Rs 83.45. Volumes also surged to 2.82 lakh shares against its two-week average volumes of 1.30 lakh shares.

Jayanta Mallick

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