Alphageo India
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs214
Current market price: Rs155
Revision of earnings estimates
Alphageo has announced that its board has been authorised to issue and allot 5.5 lakh convertible warrants to the promoters at a price of Rs136 per share (ie a premium of Rs126 per share). The warrants are convertible within a period of 18 months and would enable the company to raise Rs7.5 crore.
In addition to the proceeds of the issue, the company is likely to take a debt of Rs10-12 crore to fund the capital expenditure (of around Rs18-20 crore) on setting up the third crew to carry out 3-D seismic study.
SECTOR UPDATE
Pharmaceuticals
Zocor market open to allThe 180-day exclusivity for simvastatin, the cholesterol-lowering drug, is getting over on December 23, 2006, paving the way for generic companies to enter the $4.8-billion simvastatin market in the USA. In this regard, Cadila Healthcare (Cadila), Aurobindo Pharma (Aurobindo), Cobalt, Sandoz, Perrigo and Dr Reddy’s Laboratories (Dr Reddy’s) have received the final approval from the US Food and Drug Administration (USFDA) for manufacturing and marketing simvastatin in all strengths, namely 5mg, 10mg, 20mg, 40mg and 80mg. Ranbaxy Laboratories (Ranbaxy), which already has the approval for the 80mg strength of simvastatin, has also secured the approval for the remaining four dosages.
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