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Saturday, July 07, 2007
Friday, July 06, 2007
Telecom subscribers cross 205 mn mark
India's total telecom subscriber base has reached over 205-million mark at the end March, a growth of 8.39 per cent as compared to the figure on December 31, 2006.
The blended Average Revenue Per User per month for GSM services in the country has declined by 5.69 per cent from Rs 316 in the quarter ending December 2006 to Rs 298 in the three-month period ending in March.
For CDMA services, it increased to Rs 202 as against Rs 196, registering a growth of 3.06 per cent, according to TRAI's Quarterly Performance Indicators of Telecom Services for the quarter ending March.
The teledensity reached 18.23, compared to 17.16 at the end of the previous quarter.
The subscriber base for wireless services has increased from 149.62 million to 165.11 million and that of wireline service from 40.30 million to 40.75 million.
The internet subscribers base reached 92.71 lakh at the end of March 2007, registering a growth of 8.03 per cent, whereas broadband subscriber base reached 23.39 lakh in the same quarter, a growth of 13.85 per cent.
The number of Public Call Offices (PCO) in the country increased from 5.30 million to 5.55 million at a growth rate of 4.72 per cent while the number of Village Public Telephones (VPT) rose to 5.64 lakh from 5.57 lakh, an increase of 1.26 per cent.
IPOs craze: Getting jiggy with it
Close to 24 issues during the past one year have outperformed the market and nearly half of all the issues that came in the past one year are still trading above their issue prices.
The question now on every investor's mind is: “Do I hold on or do I cash out?” As always, trust ET Investor's Guide to step in when in doubt, as we guide you on how to ensure that you continue being both a profitable, as well as a prudent investor. We think that it is time for IPO-intensive portfolios to be rebalanced.
The rebalancing is necessary, given the greater clarity on many of the projects that these IPOs were intended to fund. Also, over the past year, many of these stocks have seen a re-rating, thereby altering the view that investors should now take on these stocks. Some of these companies are now trading at levels which are at the higher end of their peer group and not necessarily the best either.
While ET Investor's Guidesaw value in many of these at the time of issue, we think it's time to cash in. Similarly, there are others which, given the discount to issue price, are now starting to look extremely attractive.
A few like Cairn have seen a change in their business environment. For example, ET Investor's Guide was not enthusiastic at the time of Cairn's IPO, given the lack of clarity on how the crude would be evacuated. However, today a greater conviction and visibility has emerged on the same and so, we believe it's time to accumulate.
Others like ICRA have seen a complete reversal in fortunes, while our recommendation was mainly on account of the valuation discount to Crisil. This has changed post-listing, with Crisil now trading at a discount. Similarly, others like GVK and GMR Infrastructure have seen a big change in their fortunes, with the market starting to realise the potential of airports, which was never really there at the time of the issue. So, how exactly do you go about recasting your IPO portfolio? ET Investor's Guide gives you a headstart.
Goodbye
GMR Infrastructure: ET Investor's Guide was positive on the stock, given the company's two airport projects at
Development Credit Bank: This has been among the best performers among all our IPO recommendations, rewarding investors with close to four times their invested capital. Given the strong run that the scrip has seen, we believe that further upsides in the scrip are limited. Valuations, too, are at the upper band of peer group stocks at close to 5.5x FY07 book - banks that trade at comparable multiples include HDFC Bank. Investors may consider booking gains and moving to UTI Bank or ICICI Bank in the private banking space.
ICRA: ICRA has been largely a beneficiary of the booming financial services industry and the positive environment for ratings services. ET Investor's Guide recommendation was based on the discount multiple of the issue price to Crisil - the largest rating agency in
Sobha Developers: Sobha was among the first real estate companies to tap the equity market. Sobha largely benefited from the scarcity premium for real estate companies.This has changed substantially since then, with a slew of companies raising money through the equity route. This is also partly responsible for the stock's moderate performance, driven by higher equity supply and rising interest rates. Moreover, Sobha's projects are concentrated in
Hello
Technocraft Industries: ET Investor's Guide was bullish on this counter, mainly given its strong position in the industries that it operates.These include scaffolding equipment, storage drum equipment for petrochemicals. The stock is currently available at close to one-time sales and a P/E of 12.5x. Exports comprise nearly 95% of the company's sales and the stock is now trading at a 22% discount to its offer price.
Bluebird Industries: This is a pure value pick, trading at close to half its FY06 sales with a market capitalisation (m-cap) of Rs 242 crore and sales of Rs 400 crore. The company is among the largest manufacturers of notebook and printing stationery. It is currently available at a P/E of 10x. Further growth could come from the fresh capacities being put up, which is expected to see bottomline contribution staring H2 FY08 onwards.
Cairn
Bogged down by low property mkt?
Did you know that a slowdown in the real estate market is an opportunity for making money on real estate? This is no joke. Bust times are as much an opportunity to make money as boom times, say experts. It only requires structured market analysis to get your returns right.
Take the case of investors who have purchased at a frenzied pace during boom times. With the property market churn slowing down, many investors are exiting the market at cost price or even less. For instance, an investor who put in Rs 70 lakh (30-40% of the total cost of the property) in a premium project in Gurgaon, recently sold at a profit of a mere 7-8 lakh. And that too because he was able to purchase on the first day of the booking. For those who purchased 15 days after the booking began, the rates were higher. Those buyers have no option but to hang on or sell at a loss.
But this is a good opportunity for end users or long-term buyers to enter the property market. The developer has now started receiving final clearances and sanctions for the project and the project will start soon. This is good news for an end user who knows that his property will be ready in a finite number of months.
The end user today is also in the driver' seat while purchasing new property that has recently been completed or is nearing completion. Developers such as Supertech and Achievers are offering to pay the interest rate on the loan till the property is ready for possession.
Once he gets possession of the property, especially in expat-driven markets such as Gurgaon, Noida and South Delhi, the buyer can fully fit out and furnish the property for lease. “Once a premium property is fully furnished, you get Rs 30,000-50,000 more as rental values,” explains real estate consultant Ashok Narang. He gives the example of Laburnum in Gurgaon where monthly lease rentals range about Rs 1.5 lakh per month. But once the owner has furnished the property, he can easily get back Rs 2 lakh per month. “Furnishing involves an additional investment of up to Rs 15 lakh but yields monthly returns of about Rs 50,000 more than unfurnished property,” Narang says.
The trend of expats driving better rental returns is happening across segments of the property market too. Latest trends indicate that with every expat CEO coming to the country, there are four middle level manager who also come to India to accompany him. This segment is looking for well-maintained, well located, furnished and managed property.
They seek shorter tenures of lease but are willing to pay for services. Therefore choose your property well to get better yields. They should be in the vicinity of the economic hubs with good social infrastructure such as schools and hospitals as well as recreation facilities.
With the new thrust of lower rates of interest on smaller property loans of up to Rs 20 lakh, smaller property has started coming into the market. These are either in far-flung areas or of smaller unit sizes. Both are a good deal in the current scenario. If you are buying a property in a far-flung area, please assess the long-term merits of the location. When you start your purchase, it may look like the wilderness. But if you wait for infrastructure to come, the values will not be low. So assess the infrastructure plans of the area.
Developers are normally only too happy to tell you these details. For instance, in the Delhi NCR region, the proposed metro lines are a big draw. Property along metro lines are always good to attract end users. So check out the proposed metro plans before you buy. Expressways and bypasses also make a difference to the property rates. If you buy today, it will be two years before you can take possession of the property. If infrastructure comes in then or soon after, your deal is safe.
If you are looking at regular returns from your property investment, it is a good idea to buy even at a marginally higher cost in areas where there is good rental returns. In the last one year rental returns have risen by up to 15-20 % - 5-10% in the last six months alone. Gurgaon currently offers returns of about 4% and South Delhi areas offer returns of about 6%.
In cities such as Hyderabad and Bangalore, employers have started taking up small furnished apartments to service their own floating population. Techies who are in the city to complete a project often prefer to stay in furnished apartments rather than in hotels. Therefore investment in well-located and maintained apartment complexes with small units has become extremely popular. Technology companies are now leasing them in bulk so that all their employees can stay in the same complex.
If you have a transferable job and are wary of buying in one city from where you may be transferred out, remember rising rental returns are in your favour. If you buy today in the city you are stationed in, buy where there is demand for rental property. If you have to go to another city, either sell off the property and use that as the seed money to buy in the new city. Don't worry. There is nothing dramatic or radical about that. This kind of sale and purchase is done globally. Property investments have been considered a once in a lifetime decision only in India. Today, there are brokers who can help you sell in one city and buy in another at the same time.
If you are uncomfortable with that idea, do not think of lugging your furniture to the new city. Let out your flat furnished for better rental returns which will ensure regular income when you move to the new city. There are now a few tenancy managers who are interested in managing your tenancy for a fee. This may help ensure peace of mind along with regular returns.So go ahead and buy. Just make sure you assess all parameters well before you purchase.
DLF , Bharti Airtel
After a couple of aborted attempts and a few hiccups later, real estate giant DLF finally made its much-awaited entry into the stock market. However, the recent slowdown in the industry and reports of property prices cooling off in some parts of India ensured that the listing was not as spectacular as some of the previous realty offerings. The company's pricing, which was considered as fairly valued, also had a bearing on the stock's performance as there was nothing much left on the table for investors, some of whom look for big listing gains and make a quick exit. They were certainly a disappointed lot. Still, it was a historic development, both for the real estate sector itself and for the Indian capital market. Post listing DLF became the eighth most valuable stock while the company's promoter - KP Singh - edged ahead of Azim Premji and Sunil Mittal to become the third richest person in India behind the two Ambani brothers.
Shares of DLF slipped after rising as much as 36% in the New Delhi-based real estate major's stock market debut. Investors turned cautious given the slowdown in the property market in the wake of the string of monetary tightening steps taken by the central bank and other measures announced by the Government to curb activity in the real estate sector. The stock opened at Rs582 on the Bombay Stock Exchange (BSE) as against the issue price of Rs525, reflecting a premium of nearly 11%. There was a freak trade at Rs714, but after that the euphoria dived, and subsequent trades took place at under Rs580.
The scrip finished the maiden trading day at Rs570, after touching a high of Rs714.25 and a low of Rs505.60. Total turnover in the stock, including F&O, almost touched Rs90bn. Also, delivery volume on the first day stood at 40% of the total traded quantity. The stock now accounts for half of the market cap of the real estate sector given the size of the issue. The realty sector itself has seen a huge jump in its total valuation with the DLF listing. The industry now ranks ahead of Auto, Pharma, FMCG and Cement.
DLF's 1.75-million share issue was subscribed 3.4 times. The price band for the issue was fixed at Rs500 to Rs550 per share. The issue price was set at Rs525, raising US$2.25bn in India's biggest IPO. The QIB portion of the issue was subscribed 5.1 times but the company barely managed full subscription for the 52.2 million shares reserved for retail investors. DLF, which scrapped the IPO in 2006 August because of shareholder disputes and valuation concerns, will use the proceeds to build apartments and offices and increase land purchases. But, the company is not done with its fund raising plans. DLF Assets, a fund set up by DLF, plans to raise US$1bn to buy land for development. It also plans to go public in the next 2-3 years.
Bharti Airtel Ltd. said it had offered a 4.99% stake to Temasek Holdings, Singapore Government's investment arm, for an undisclosed consideration. One of the group companies decided to grant an option to acquire an indirect stake in the company to a wholly owned subsidiary of Temasek Holdings, Bharti Airtel said in a statement. The option arrangement envisages acquisition of such number of shares which, on exercise, will result in a beneficial stake in the company to the extent of 4.99%, the New Delhi-based wireless telecom operator said. Though Bharti Airtel did not disclose the deal size, at current market price, it is worth over Rs82bn (about US$2bn).
Meanwhile, Singapore Telecommunications said it had the first right to buy shares of Bharti Airtel from Temasek. "The relevant parties have reached agreement that SingTel and Bharti have first rights to the shares acquired by Temasek pursuant to the exercise of the option, subject to certain conditions," SingTel said. "Should Temasek decide to exercise its option to purchase the shares from Bharti, and should Temasek decide to sell these shares thereafter, Bharti and SingTel have first rights," it clarified. SingTel currently has a 30.5% stake in Bharti Airtel. Temasek is the largest shareholder in SingTel.
This would be Temasek's second investment in a telecom company in India after it bought 9.9% in Tata Teleservices. There would not be a dilution in the promoters' stake in Bharti Airtel. Bharti Enterprises will continue to maintain a controlling stake of over 45% through its subsidiary Bharti Telecom, as Temasek is indirectly picking up shares from British telecom major Vodafone. After acquiring a majority stake in Hutch-Essar, Vodafone had announced that it would sell a 5.6% equity stake in Bharti Airtel for US$1.6bn in two tranches before November 2008. Vodafone will continue to hold its 4.39% indirect stake in Bharti Airtel.
Victorious week for bulls
Well it's a long way up and we won't come down tonight
… cause tonight will be mine - up on cloud number nine
The bulls were on a rampage this week crossing the 15k mark in style. However, they failed to settle above the psychological milestone as profit booking set in at higher levels. A sudden push from the bulls in afternoon trade on Friday lifted the Sensex past the 15,000 mark. The volatile week witnessed the listing of realty major DLF. ACC, HLL, Tata Motors, L&T and Bharti Airtel were among the major gainers. Higher crude oil prices and a stronger rupee failed to have any kind of impact on the bulls. Banking, Capital Goods, Cement and Auto shares were the big movers .
Pick up in FII investment has fueled the rally in recent days after the Nifty breached the key levels of 4300 last week. The tremendous response to the recent public issues, both in local and overseas markets have made investors more confident over the growth of the Indian economy. The Sensex rose 313 points or 2.14% to close the week at a lifetime high of 14964. the NSE Nifty advanced by 1.52% or 66 points to end at 4384. The Sensex has now gained 800 points in three consecutive weeks.
IT stocks, which were underperformers in recent times saw value buying ahead of Q1 results. However, refinery stocks witnessed profit booking as crude oil price hit a 10-month high of $72 per barrel. Many frontline stocks like L&T, BHEL, ABB, SBI closed at an all time high. Impressive auto monthly numbers, hike in cement price, rally in the global market and continued FII buying boosted market sentiment.
The results will start next week with Infosys kicking off the earnings season on 11th July. Infosys results and its guidance will be a key factor to determine the market trend. Others like Hindalco, HDFC Bank, Bajaj Auto and UTI Bank will announce Q1 results next week. We are bullish on the market but some profit booking is not ruled out. Our top sectors are banking and cement. Our top picks for investment are IOB, Andhra Bank, Kesoram, Mangalam Cement and Balrampur Chini. Other stock ideas are Bharti Airtel, ONGC, HCL Tech, M&M and Maruti.
Gains were also seen across telecom stocks. Bharti Airtel rose by over 3.5% to Rs866 after the company said that India's monthly user addition would cross 7mn. It also announced that Temasek would pick up 4.99% stake in the company and signed an outsourcing pact with Nokia Siemens for US$900mn. The scrip hit week’s high of Rs882 and a low of Rs835. Reliance Communications surged 6% to Rs550. The second largest wireless operator added 1.4mn new mobile users last month. It also announced that it was in talks with Alcatel-Lucent and Huawei to buy equipment for GSM expansion worth Rs30bn. The scrip hit week’s high of Rs565 and a low of Rs519.
The BSE Capital Goods index was the top gainer, rising by 3.9%. L&T was the second biggest gainer in the of Sensex. The scrip rose over 7.5% to Rs2364. L&T announced it would set up three units for railways, power and ship building. It also declared a special dividend of Rs2 per share. The company's US$1bn infrastructure fund is expected to be operational in the next couple of months, according to Chairman and Managing Director, AM Naik.
Auto stocks made a smart comeback this week on the back of value buying. Four-wheeler makers such as Maruti and M&M clocked strong monthly sales figures. The BSE Auto index gained 3.5%. The biggest gainer among was M&M. The scrip rose by 9% to Rs787. Tata Motors paced ahead by 6% to Rs711, Maruti surged by 7% to Rs791.
IT stocks came back into the focus ahead of the announcement of their results. Barring Friday software stocks were under pressure due to nagging concerns about margin compression from rupee appreciation. The Indian rupee gained for the fourth straight week, rising 0.6% to 40.55 per dollar. The BSE IT index was up 1.6% during the week. Satyam advanced by 4.6% to Rs489. Infosys gained 2.1% to Rs1971 and Wipro climbed 0.3% to Rs519.
Cement stocks, which have been underperforming the market for the past few months, had a week to remember amid reports that cement producers hiked prices by Rs3-5 per 50-kg bag across the country. Last week, cement shares had gone up after Finance Minister P. Chidambaram said the government had not asked cement companies to freeze prices and it would not interfere in setting cement prices. ACC jumped over 11% to Rs1040. Grasim spurred by over 5% to Rs2773 and Gujarat Ambuja added 5% to Rs131.
Good start to the monsoon had a positive effect on FMCG and Agri stocks. Talks of new fertilizer policy have also been doing the rounds. The BSE FMCG index gained 1.4% during the week. HLL rose by over 5.5% to Rs199, Colgate advanced by overt 4% to Rs385 and Britannia rallied by over 8% to Rs1709.
Gear up for some high octane action
A whole new world
Every turn a surprise
With new horizons to pursue
....let me share this whole new world with you
15k is finally here. For the moment, it cant get any bigger than this for the bulls. Though they stretched themselves for 146 days to move from 14K to 15K. With result season kicking off and RBI meeting later this month, the ride is sure to get bumpy.
Bulls are now in uncharted territory. Much will depend on the performance of tech companies as Infosys starts the earnings season on July 11. Earnings guidance would play an important role going ahead given the appreciation in the rupee. Any negative noises from Infosys and its fellow software firms could keep the bulls on the back foot. According to India Infoline estimates, results of the top 3 companies would be disappointing and in line with market expectations. Satyam and HCL Tech are expected to come out with relatively better numbers.
However, much of the tech stocks may already be factored in the prices. Therefore, any positive sounds could result in buying at these levels. We advise buying the Top 5 Companies post results with enhanced clarity on growth and profitability.
Banking stocks will continue to be in focus with inflation around 4% and likely to remain low for another couple of months banks have seen a window of opportunity in reducing select rates while keeping PLR at same level to align with the hawkish stance of RBI.Weekly Stock Recommendations
Buy Dr Reddys Labs (672)
SL 661 T 695, 700
Buy Voltas (121)
SL 117 T 129, 132
Buy HCL Tech (338)
SL 331 T Rs352, 357
Buy Tulip (792)
SL 777 T 825, 830
SL 134 T 154, 158
Infosys Q1 result to dictate trend
Q1 June 2007 results would dictate the trend on the bourses this month. Ahead of the earnings reporting season, the barometer index BSE Sensex hit a record high above 15,000 on Friday, 6 July 2007. Also, stock specific activity may rule the roost on the bourses this month due to results.
All eyes are on the result of index heavyweight Infosys Technologies. Infosys unveils its Q1 June 2007 results on Wednesday, 11 July 2007. IT shares surged on Friday, 6 July 2007, on bargain hunting, believing that disappointing Q1 June 2007 results had already been factored in their share prices.
Market men expect Infosys to revise downwards its rupee EPS guidance for FY 2008 to factor in the impact of the rupee’s rise. But they expect Infosys to raise revenue guidance in dollar terms. This will help it maintain the EPS guidance in dollar terms.
Infosys had guided a 20% to 22% growth in EPS in FY 2008 and a higher 25.7% to 27.7% growth in EPS in dollar terms at the time of announcing FY 2007 results.
Two-wheeler maker Bajaj Auto unveils Q1 June 2007 results on Thursday, 12 July 2007.
Domestic bourses will continue to take cue from overseas markets. Over the past two years or so Indian bourses have been closely tracking trend in global equities. Asian stocks hit record highs in the first week of July 2007.
Investors will also be keeping an eye on central bank meetings in Japan and South Korea as well as rising oil prices, with London Brent crude now within sight of last year's record high. Early in the week, regional markets may react to any surprises from the influential US employment data for June 2007.
Market settles at all time high
It was a historical week for the markets, with the barometer index BSE Sensex hitting the 15,000 level and the S&P CNX Nifty also crossing the 4,400 mark. They also managed to settle at all time high levels. Fall in inflation, easing fears of interest rate hike, steady progress of monsoon, fresh build-up of positions in derivatives markets were the factors that triggered rally on the bourses. The market settled with gains in 4 out of 5 sessions in the week
The BSE Sensex gained 313 points to 14,964.12 in the week ended 6 July 2007 while the S&P CNX Nifty rose 67 points to 4,384.85
The week started on upbeat note with the BSE 30-share Sensex gaining 13.75 points to 14,664.25, on Monday, 2 July 2007. Auto, capital goods, and healthcare shares were in demand, while cement and IT shares witnessed selling.
Sensex jumped 142.25 points to 14,806.51, on Tuesday, 3 July 2007, with banking, telecom, FMCG, and construction stocks leading the rally.
The rally continued for the fifth straight trading with the BSE Sensex advancing 73.73 points at 14,880.24 on Wednesday, 4 July 2007. Shares from the metal, cement and sugar sectors saw buying, while IT pivotals were offloaded.
The five-day rally fizzled on Thursday, 5 July 2007, with the Sensex declining by 18.35 points to 14,861.89, in highly volatile trade. Auto and capital goods shares were in demand, while IT pivotals were offloaded. Realty major DLF debuted on the bourses on that day.
The benchmark 30-shares BSE Sensex galloped 102.23 points at 14,964.12, an all time closing high on Friday, 6 July 2007. It also struck a record high of 15,007.22 on on that day.
Auto stocks were in demand. Maruti Udyog rose after it sold 59,917 vehicles in June 2007, up 24% from 48,425 vehicles sold in June 2006. Maruti Udyog sold 56,000 units in the domestic market, up 25.5% from 44,626 units in June 2006.
Tata Motors, M&M and Hero Honda Motors, also edged higher
State Bank of India (SBI), the country's largest commercial bank, rose on reports that it would soon enter new business streams including pension funds to tap emerging opportunities.
Index heavyweight Reliance Industries (RIL) settled with marginal gains. The Committee of Secretaries (CoS), which met on Monday 2 July 2007 to decide on the issue of gas pricing from RIL’s D6 fields in the Krishna-Godavari (K-G) basin, has asked the power and fertiliser ministries to present their views before the committee on 5 July 2007.
Engineering & construction major Larsen and Toubro (L&T) struck a lifetime high on reports it had formed separate companies for power projects and shipbuilding businesses. The company may also unlock value in power and shipbuilding businesses after five years. Meanwhile, L&T expects Rs 1,000-crore revenue per annum from railway modernisation in three years.
State run oil exploration major ONGC slipped as it sharply cut gas reserve estimates at one of its blocks in the Krishna Godavari Basin. The block is estimated to have 2.38 trillion cubic feet (TCF) of in-place gas reserves, much lower than its earlier estimate of 21 TCF.
Cement stocks surged following reports that cement firms have hiked prices by Rs 3-Rs 5 per 50-kilogram bag across India. ACC, Ambuja Cements, Grasim, UltraTech Cement Company, India Cements, all logged smart gains.
Vishal Retail settled at Rs 752.20, a huge premium of 178.51% over the IPO price of Rs 270, on Wednesday 4 July 2007. The scrip touched a high of Rs 809 and low of Rs 423.25. It debuted at Rs 472.50. On BSE, 1.14 crore shares were traded in the counter on that day.
Real-estate major DLF settled at Rs 570.05, a premium of 8.57% over the IPO price of Rs 525 per share, on Thursday, 5 July 2007. The scrip debuted at Rs 582, and touched a high of Rs 714.25 and a low of Rs 505.60 during the day on BSE. The counter saw high volumes of 3.42 crore shares on BSE, on that day.
India's wholesale price index rose 4.13% in the 12 months to 23 June 2007, higher than the previous week's increase of 4.03% due to a rise in some food and mineral prices, government data released noon on Friday, 6 July 2007, showed.
Roman Tarmat Listing on Monday, 9 July 2007
Roman Tarmat will list on BSE and NSE on Monday, 9 July 2007. It will be placed in the B1 group on BSE. The company had fixed the IPO price at the top end of the Rs 150 - 175 price band.
At the IPO price of Rs 175, the PE multiple is 22.43, based on the year ended March 2006 EPS of Rs 7.8.
Roman Tarmat IPO ended on 19 June 2007 with 29.67 times subscription. The issue received total bids for 8.60 crore shares compared to total issue size of 29 lakh shares.
The total bids in the Qualified Institutional Buyers (QIBs) category were 3.84 crore shares. From this category, the Foreign Institutional Investors bid for 2.86 crore shares, Domestic Financial Institutions bid for 73.75 lakh shares and Mutual Funds bid for 20.88 lakh shares.
The Non Institutional Investors bid for 2.60 crore shares, out of 4.20 lakh shares allotted for this category.
The retail individual investors bid for 2.13 crore shares. From this, 2.01 crore shares were bid at cut off price and 11.87 lakh shares were price bids. The employees bid for 75,000 shares.
Roman Tarmat is a Mumbai-based infrastructure company engaged in the business of highways, runways and other civil work.
The company, established in 1986, provides engineering, procurement and construction services for infrastructure projects sponsored by Government/Government agencies.
Broadly, the business activities can be categorised into the following three segments: airside works; highways and roads; and other civil work. The company is one of the few construction companies in India operating in the area of construction of runways, which requires a strict focus on quality to ensure safe take off and landing of aircrafts.
Over the years, it has developed the expertise of building runways that adhere to the strict quality standards and has built runways for major civil airports (Mumbai and New Delhi airports) as well as military airports.
The order book comprising un-commenced projects, unfinished and uncertified portions of its commenced projects, as on 30 April 2007, was Rs 336.89 crore.
The company posted a net profit was Rs 8.50 crore in FY 2006, as compared to Rs. 3.67 crore in FY 2005. Total income of Rs 90.94 crore in FY 2006, as compared to Rs 77.30 crore in FY 2005.
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