Infosys Technologies
Cluster: Evergreen
Recommendation: Buy
Price target: Rs2,430
Current market price: Rs2,252
ADS issue priced at $53.5
The sponsored American depository shares (ADSs) issue by Infosys Technologies have been priced at $53.5 each excluding the underwriting discounts and commissions. The aggregate size of the ADS issue works out to $1.6 billion, taking the total market capitalisation of Infosys' overseas float to over $5.5 billion. Consequently, Infosys is likely to get included in the Nasdaq-100 index in the forthcoming review of the index constituents in December.
Sanghvi Movers
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs1,150
Current market price: Rs763
Oozing confidence
At its board meeting held on November 17, 2006 Sanghvi Movers decided to allot up to 880,000 equity shares of face value Rs10 each to Goldpeak. (Goldpeak is a wholly-owned subsidiary of Aria Investment Partners III, LP). The proposed allotment would be carried out as per the pricing formula recommended by the Securities and Exchange Board of India or at Rs825 per equity share, whichever is higher.
By way of this allotment the company proposes to raise Rs72.6 crore, which will go towards funding its enhanced capital expenditure (capex) requirements. We had earlier estimated the company's capex needs at Rs150 crore this year; the estimate has now been revised upwards to Rs200 crore, as per management's guidance.
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