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Wednesday, January 06, 2010
Upper Ganges Sugar
We recommend a buy in the stock of Upper Ganges Sugar and Industries from a short-term perspective. It is apparent from the charts of the stock that the stock found support in the range of Rs 76 and Rs 80 during early November 2009 and bounced. Subsequently, it resumed the longer-term uptrend that has been in place since the December 2008 low of Rs 29, forming higher peaks troughs. Following a short-term sideways consolidation around Rs 90, the stock made an upward breakthrough by gaining 5 per cent on January 4. The stock's bullish momentum prolonged and the stock is well above its21- and 50-day moving averages. We notice that there has been an increase in volumes over the past three trading sessions. The daily as well as weekly relative strength indices are featuring in the bullish zone. A sign of optimism is observed in the moving average convergence and divergence indicators. Considering that the stock's longer-term uptrend-line is in tact, we are bullish from a short-term horizon. We expect it to move up until it hits our price target of Rs 116. Traders with short-term perspective can consider buying the stock with Rs 99 as stop-loss.
via BL
Daily News Roundup - Jan 6 2010
US fund house TIAA-CREF has exited ONGC and other Chinese energy companies over their investments in war-torn Sudan. (BS)
BHEL says it bagged 11.2GW orders from independent power producers between April 09 and December 09, comprising 94% of the total order inflow during this period. (BS)
BHEL has seen order intake worth Rs350bn in the first nine months of the current financial year. (BL)
Mobile service provider Aircel has entered into a partnership with Infosys Technologies to launch mobile application store. (BL)
Bangladesh's telecom regulator has approved Bharti Airtel's proposal to buy a 70% stake in Warid Telecom for about US$300mn. (BL)
HPCL's Mumbai refinery has rolled out the first batch of Euro IV MS [petrol] for meeting their north and north-west needs. (FE)
Maruti Suzuki said that it aimed to jack up its total output by 50% to 1.5mn units in five years to defend its 50% market share. (BS)
The RBI has barred foreign institutional investors from buying Maruti Suzuki shares citing the investment limit under the portfolio investment scheme has been reached. (FE)
Sterlite Industries has put on hold its proposed Rs23bn copper smelter expansion project at Tuticorin in southern Tamil Nadu as a dispute related to the project is being fought in the court. (ET)
Maharashtra Electrosmelt, a subsidiary of SAIL, will invest Rs2bn to set up a furnace with capacity of 42,000tpa at its Chandrapur plant. (ET)
Sobha Developers plans to launch projects worth Rs28bn over the next 12-18 months covering 8mn square feet. (BS)
Axis Bank launched the ‘Power Advantage Home Loan’ scheme which offers housing loans at a fixed interest rate of 8.25% p.a. for the first two years and a floating rate of interest thereafter. (BL)
The Supreme Court issued a notice to Nestle India on the plea of the I-T department seeking adjudication on the issue of whether MAT falls within the meaning of ‘advance tax’ so as to enable the company to set off against tax payable in assessment year 1998-1999. (ET)
The government will examine Sun Pharma’s post marketing surveillance studies and clinical trials report of breast cancer medicine Letrox to decide whether the drug should be banned from being marketed. (ET)
Tel Aviv district court on Monday ruled in Taro's favour in one case filed by Sun Pharma. (FE)
IVRCL bagged Rs9.6bn worth of contracts in transportation, water and irrigation, buildings and power sectors. (FE)
Century Real Estate Holdings, the realty development arm of Century Group, plans to raise Rs7bn to expand its development initiatives. (BS)
MTNL is introducing VDSL2 (Very high speed digital subscriber line) service which will provide 100Mbps symmetrical traffic on short copper loops. (BL)
Indian shipping companies, such as Great Offshore, Chowgule Ports and Infrastructure and Bharati Shipyard, are investing in creating repair facilities, a market pegged at around Rs20bn annually. (ET)
Uttam Galva Steels, one of the leading manufacturer and exporter of value added steel, increased prices of its products by Rs3,000/ton. (BL)
L&T Infotech bagged two turnkey ERP projects from the Indian Railways for automating the maintenance of its wagon fleet and diesel locomotives. (BL)
The Anil Ambani-promoted Reliance Big Pictures which is distributing the movie is planning to add new screens in the third week of the movie's release buoyed by the response of the audience. (BL)
Rising raw material prices will result into FMCG companies increasing prices or reduce grammage per pack over the next one or two quarters. (BS)
Mukesh Ambani and Anand Jain promoted Mumbai SEZ Ltd has suspended its land acquisition for the MahaMumbai SEZ in coastal Raigad for an indifinite period. (BS)
Karnataka government has granted in-principle approval to ArcelorMittal’s and Posco’s proposal to invest Rs300bn and Rs323bn respectively for setting up a steel plant. (BS)
Infinite Computer Solutions plans a public issue to raise around Rs1.9bn at the upper end of the price band of Rs155-165/share. (BL)
TCG Lifesciences, the Rs4bn clinical research organisation (CRO), has entered into an exclusive collaboration with the US-based pharma giant, Pfizer, to develop a portfolio of pre-clinical molecules for discovery of new drugs. (ET)
A healthy increase in corporate tax receipts pushed direct tax collections in December 09 to Rs664.1bn, up 24.5% from Rs533.5bn collected in the month a year ago. (BS)
Indian industry has urged the government to continue the stimulus package till the middle of the next financial year to help the economy achieve robust growth. (BS)
The center announced sops for the food processing industry including separate policy at the state level, thrust on contract farming and making the sector tax-free. (BS)
Medium and small scale drug manufacturing units in Madhya Pradesh have alleged that they are being ignored in the new drug manufacturing policy of the state government, likely to be effective from March this year. (BS)
Union Minister of State for Textiles said the domestic textile sector was recovering from recession and is showing positive growth. (BS)
Political disturbance over the demand for a separate Telangana state is forcing information technology companies to shift. (BS)
India has dropped projects located in Arunachal Pradesh from its list of projects to be funded by the Asian Development Bank in 2010. (BS)
The power ministry is seeking an over 56% increase in the gross budgetary support for its planned outlay, at Rs144.3bn, for 2010-11 primarily for the R-APRDP and RGGVY programmes. (BS)
The Union minister for New and Renewable Energy said the government is negotiating ethanol prices at Rs26-27/litre and is likely to be finalised this month. (ET)
The Planning Commission has asked the finance ministry for a substantial hike in the budgetary support for Central ministries and departments for the coming fiscal to meet the expansionary aspirations’’ in various sectors, especially education, a government official has said. (ET)
Pension regulator PFRDA will launch a low-cost pension scheme on April 1 to provide social security cover to economically weaker sections. (ET)
Not many worries as yet!
Happiness is not the absence of problems but the ability to deal with them.
The bulls seem to be a happy lot; they don’t have many issues to deal with for now (except perhaps a round of profit-booking soon). The good news is that money is still flowing into Indian stocks, both from overseas and local investors. Risk appetite seems to be intact despite some worries on valuations and uncertainty over the prospects for the year. So far we’ve not got any real bad news from any corner of the world.
If the current positive trend persists, the Nifty can comfortably pierce the 5300 milestone today. Beyond that it could face resistance at 5310 and 5360. The bull camp is talking about levels of 5500-5600 in the medium term, provided there are no nasty surprises. But, this is just the beginning of 2010.
A subdued recovery in matured economies could possibly drag the market down. Dollar’s movement is another key variable that might swing the pendulum either way. For now though it looks like policymakers are likely to maintain status quo on various stimulus steps. Any unwinding of stimulus measures would be done in a gradual manner.
Another bout of weakness in the dollar lent further support to commodities and the global equity rally on Tuesday. But, the US currency turned higher against the euro and pared declines against other rivals, after a steep drop in pending home sales fueled demand for the greenback as a safe-haven currency.
The dollar index, which tracks the US currency against a trade-weighted basket of six major rivals, rose to 77.63, up from 77.503 late on Monday and 77.34 earlier in the session. The greenback had initially extended session losses after reports showed a bigger-than-expected gain in factory orders in November.
Meanwhile, copper dipped on Tuesday after hitting a 16-month high in the previous session, but crude oil maintained its upward momentum and sugar prices extended their record-breaking run. Surge in risk appetite and renewed hopes on an economic recovery was also in play.
Ratings agencies cut their views for Iceland, after the country's president vetoed legislation that would have repaid the UK and the Netherlands for bailing out depositors of a failed Icelandic bank, potentially imperiling rescue loans for the embattled country.
US stocks ended nearly flat after a choppy session as investors considered a volatile dollar, a slew of auto sales and reports on pending home sales and factory orders. The Dow Jones Industrial Average lost 12 points, or 0.1%. The S&P 500 index added 3 points, or 0.3%. The Nasdaq was barely changed.
After the three leading indexes climbed to fresh 15-month highs on Monday, a weak dollar on Tuesday initially gave a push to dollar-traded commodities and select stocks that do business overseas. But the dollar turned mixed by the late afternoon, diluting its impact.
A late-session advance in the influential banking sector helped the market find its footing late in the session, with the KBW Bank index adding 2.2%.
US stocks had a strong year, in which the broad S&P 500 managed to gain over 23% despite touching a more than 12-year low in March. Between that March 9 low point and year end, the S&P 500 gained 65%.
The trend in 2010 will likely remain up, but that the gainers will be a more selective bunch than last year, when most areas of the market advanced. There is still a lot of money on the sidelines, which could make way into the market if corporate earnings are good.
Homebuyers signed 16% fewer sales contracts in November than in December, according to a National Association of Realtors report released in the morning. Economists had expected the report to show that pending home sales fell 2% in November after rising for 9 straight months. Still, sales were up 15.5% from November 2008.
The November setback reflected the near-expiration of the government's first-time homebuyers tax credit. Buyers jumped in when the credit was expected to expire on Nov. 30. But once it was announced that it was being extended through June, the buying frenzy lost momentum.
Another report showed that factory orders increased by 1.1% in November after climbing 0.8% in October. Economists thought orders would grow by 0.5%.
A third report showed that severe unemployment worsened in big cities in November. The government reported that 17 of 372 metropolitan areas surveyed had unemployment rates of at least 15% in November up from 15 areas in October.
Kraft Foods sweetened its $16.4 billion hostile takeover offer for British chocolate maker Cadbury, providing a partial cash-alternative to its already announced deal. The funding would come from Kraft's sale of its frozen pizza business to Swiss food company Nestle for $3.7 billion in cash, a deal announced early on Tuesday.
Separately, Nestle said that it won't bid for Cadbury. But Berkshire Hathaway, the conglomerate run by influential investor Warren Buffett and Kraft's largest shareholder, said that it is voting "no" on Kraft's request to issue as many as 370 million shares to help finance the bid for Cadbury.
Berkshire said that allowing this would essentially be giving Kraft a blank check.
Kraft extended its deadline for the Cadbury offer to Feb. 2. Kraft shares rallied nearly 5%.
Google released its Nexus One smartphone, the first mobile device entirely designed by the company. Previously, Google had designed mobile software such as Google Maps and also released its Android operating system.
Also, Apple said on Tuesday that the number of iPhone applications downloaded from its App store has topped 3 billion. Late on Monday, a Wall Street Journal report said that Apple will ship its much-anticipated tablet computer in March, following a January unveiling.
US automakers reported improved December sales at the end of their worst year in decades.
Ford Motor's US sales jumped 34% in December versus a year ago and over 50% versus the previous month. But Ford's sales for the full year fell 15%. Rival General Motors said that sales fell 6% in December versus a year ago, but said that sales rose 38% from November. For the full year, GM said that sales fell 30%.
Among other companies reporting, Chrysler said that sales in December fell 4% versus a year ago and up 36% from November. Chrysler also dropped 36% for the year and sold fewer than a million vehicles, its worst year since the early 1960s.
The dollar gained versus the euro and fell against the yen.
COMEX gold for February delivery gained 40 cents to settle at $1,118.70 an ounce. Gold closed at an all-time high of $1,218.30 an ounce last month.
US light crude oil for February delivery rose 26 cents to settle at $81.77 a barrel on the New York Mercantile Exchange, the highest close since October 2008.
Treasury prices rose, lowering the yield on the 10-year note to 3.75% from 3.82% late on Monday.
European stocks ended a choppy session virtually unchanged, giving up early gains as Cadbury fell in the wake of Nestle's decision to take itself out of the running for the UK chocolate maker. After a 1.8% gain in the first trading session of the year on Monday, the pan-European Dow Jones Stoxx 600 finished the day down 0.06 point at 257.59.
Novartis shares fell for a second day, losing 1.8%, following the company's $39 billion plan to buy the rest of Alcon it didn't already own.
The UK's FTSE 100 climbed 0.4% to close at 5,522.50, as the Royal Bank of Scotland jumped 10.3% to rally for a second day and as Barclays gained 6.3%.
Bulls extended gains on Tuesday ending on a new closing high. The rally was led by metals and realty stocks. The Mid-Cap and the Small-Cap stocks also healthy attracted buying. Strong manufacturing data, favorable comments from Fed officials and overnight gains in the US and Asia had an overall positive effect.
The BSE Sensex advanced 128 points to end at 17,686 after touching a high of 17,729 and a low of 17,578. The Nifty advanced 46 points to end at 5,278.
Equity markets in Asia were positive. The Nikkei in Japan was up 0.25%, while Australia's S&P/ASX ended higher by 1%. The Shanghai SE Composite gained 1.25% and Hang Seng index in Hong Kong was up 2%.
In Europe, stocks were trading flat. The DAX in Germany was down 0.2% and the CAC 40 index in France was down 0.2%. The FTSE in the UK was flat.
Coming back to India, among the BSE sectoral indices, the Metals index was the top gainer, adding 4%, followed by the Realty index that was up 1.2% and the BSE Teck index was up 1%. Even the BSE Mid-Cap index gained 1.2% while the BSE Small-Cap index was up 1%.
Among the 30-components of Sensex, 23 stocks ended in the positive terrain and 7 ended in the red. Hindalco, JP Associates, Sterlite Industries, RCom and Grasim were among the top gainers.
On the other hand, among the major losers were Maruti, Tata Motors, ACC, NTPC and Reliance Industries.
Outside the frontline indices, the big gainers in the broader market were MTNL, Gujarat NRE Coke, SCI, CESC and Tata Communication. On the other hand, losers included Videocon Ind, Central Bank, Fortis Health and Indian Hotels.
Bharti Airtel's US$300mn initial investment proposal for acquiring 70% stake in Warid has been approved by the Bangladesh telecom regulator.
Chairman Zia Ahmed of Bangladesh Telecommunication Regulatory Commission (BTRC) was quoted as saying "We have approved Bharti Airtel's plan to buy the Warid stake".
"We hope Airtel investment would cross US$1bn within the next few years," Ahmed said. He further added, "Whatever price Airtel is going to pay for Warid stake, as per law, 5.5% of the deal amount must go to BTRC".
Shares of Bharti Airtel gained by 1.6% to end at Rs330. The scrip opened at Rs325 it touched an intra-day high of Rs332 and a low of Rs325 and recorded volumes of over 1mn shares on BSE.
Maruti Suzuki announced that it plans to create a new segment with the launch of its new 7 seater family car, MD & CEO, Shinzo Nakanishi was quoted as saying. The company showcased its new MPV Multi Purpose Vehicle at the auto show in Delhi.
Nakanishi said that Maruti Suzuki hopes to maintain sales growth in calendar 2010 despite rising raw material costs, inflation and the rise of the yen against the rupee.
"This is not an easy job this year with so many new cars being launched," he said, when asked if Maruti will be able to maintain its 50% market share. "We have to make preparations for this," he added.
Separately, the company’s finance head Ajay Seth was quoted as saying that Maruti Suzuki will decide later this month on a proposal to expand capacity.
The company has cash reserves of Rs50bn and will utilize that for the expansion, he said. Maruti has no plans to take loans, Seth said.
Maruti Suzuki expects sales this fiscal year (FY10) to reach a record 1 million units, Nakanishi said in New Delhi today.
Shares of Dr. Reddy’s Labs surged by over 3% to end at Rs1177 after the company along with Rheoscience announced that their Balaglitazone diabetes drug has met its primary target in the first of its phase 3 clinical trials.
Balaglitazone reduced blood glucose levels over a period of time in the study conducted on 409 patients, D. Reddy’s said in a statement.
Opto Circuits announced that Eurocor GmbH the Company's wholly owned subsidiary has received the CE (Communite European) Mark approval for marketing and sale of its novel Drug Eluting Stent-Taxcor Plus in world markets (sans US and Japan).
Taxcor Plus is on a Cobalt Chromium platform with Stent struts of 0.0025", which is one of the thinnest struts available in the industry. The stent is coated with Paclitaxel (1 pg/mm 2).
The stock shot up by over 4.5% to end at Rs237. The scrip opened at Rs230 it touched an intra-day high of Rs239 and a low of Rs228 and recorded volumes of over 0.46mn shares on BSE.
Shares of Sadbhav Engineering advanced by over 2% to end at Rs1235 after the company announced that it won project worth Rs13.50bn of "4 laning of Rohtak to Panipat Section of NH-71A from km 0.000 (Km 63.30 of NH-10) to km 80.858 (Km 83.50 of NH-1) in the state of Haryana on BOT basis under NHDP Phase-III." from The General Manager (Tech)-P&H, National Highways Authority of India (Ministry of Road Transport and Highways) G-5&6, Sector-10, Dwarka, New Delhi-110075.
The Concession Period of the project is 25 (Twenty Five) years inclusive of construction period of 910 Nine Hundred Ten) days from Appointed Date.
Shares of Viceroy Hotels were locked at 10% upper circuit at Rs54.35 after the company announced that the board of directors will meet on January 07, 2010, to consider and approve the raising of long term resources for the company
through issue of fresh equity shares.
To consider and approve the additional sanctions of Rs1.13bn to part finance the Bangalore Hotel Project from Syndicate Bank, Canara Bank, IDBI Bank, Allahabad bank and Lakshmivilas Bank and authorise the MD to execute the necessary loan agreements and also to consider the proposal to re-structure the Company's hotel assets.
Copper witnesses little gains
Codelco workers sign wage agreement and reduce supply concerns
Copper prices ended little higher at Comex on Tuesday, 05 January 2010. A wage accord being signed by management and workers of Codelco reduced concerns about the impending strike. Price dropped at LME.
At USA, copper futures for March delivery ended higher by 0.75 cents (0.2%) to 3.4135 a pound. It was the seventh straight session rise for copper. Copper ended FY 2009 higher by 140%.
At LME, copper for delivery in three months ended lower by $36 (0.5%) at $7,464. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
As per latest reports, workers at Codelco's Chuquicamata mine and management at Altonorte signed a wage accord after reaching agreement on terms late yesterday. Codelco offered to increase wages by 4% and boosted a bonus payment to 12.1 million pesos.
Copper ended substantially higher last year on expectations of revived global economic growth along with a decline in the dollar. The metal was also pushed higher by record first-half imports to China, the world's largest user.
Also in China, an industry report showed that manufacturing in China, the world's biggest metals user, expanded last month by the most since April 2004.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.2% following disappointing home sales data. Earlier, dollar index was down by almost 0.2%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for February delivery closed unchanged at Rs 347.35/Kg. Prices rose to a high of Rs 348/Kg and fell to a low of Rs 344.25/Kg during the day's trading.
Among other metals traded in the LME on Tuesday, lead dropped marginally to end at $2,478 a ton and zinc shed 0.8% to end at $2,554 a ton. Nickel shed 1.8% to end at $18,727. Aluminium rose 0.6% to end at $2,280 a ton.
Yellow metal pares almost all its gains
Silver manages to end substantially higher
Bullion metal prices rose on Tuesday, 05 January 2010. However, gold actually pared most of its gains after dollar went up following mixed economic data.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Tuesday, gold for February delivery ended at $1,118.7 an ounce, higher by $0.40 (0.03%) an ounce on the New York Mercantile Exchange. During intra day trading, it rose to a high of $1,129.6.
Gold ended FY 2009 higher by 24%. In 2008, gold prices ended higher by 5.5%.
Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end.
On Tuesday, March Comex silver futures ended higher by 33.7 cents (1.9%) at $17.8 an ounce.
Silver futures had ended 2009 up 50%. Silver futures had hit a low at $10.42 on 15 January, 2009 and hit a high at $19.30 per ounce on 2 December, 2009. Like gold, silver also ended lower than its all time high level.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.2% following disappointing home sales data.
The National Association of Realtors in US reported on Tuesday, 5 January 2009 that pending home sales plunged a seasonally adjusted 16% in November 2009 from October 2009. The pending sales index, which had risen nine months in a row before falling in November, was 15.5% higher than in November 2008. October's increase was revised higher to 3.9% from 3.7% previously reported.
Among other economic data expected for the day, the Commerce Department in US reported on Tuesday, 5 January 2009 that U.S. factory orders increased in November, 2009. Factory orders increased 1.1% in November, greater than the 0.8% expected by the market. This was the seventh increase in the past eight months.
At the MCX, gold prices for February delivery closed higher by Rs 3 (0.01%) at Rs 16,833 per ten grams. Prices rose to a high of Rs 16,939 per 10 grams and fell to a low of Rs 16,814 per 10 grams during the day's trading.
At the MCX, silver prices for March delivery closed Rs 393 (1.44%) higher at Rs 27,638/Kg. Prices opened at Rs 27,300/kg and rose to a high of Rs 27,688/Kg during the day's trading.
Crude ends little higher
Price rises for ninth consecutive session
Crude prices ended little higher at Nymex on Tuesday, 05 January 2010 after it pared most of its gains as dollar reversed its course. Prices also went up as traders anticipate tomorrow's weekly inventory report to show drop in crude and gasoline stockpiles.
On Tuesday, crude-oil futures for light sweet crude for February delivery closed at $81.77/barrel (higher by $0.26 or 0.3%). Yesterday, crude had settled above $81 for the first time in two months. Prices have now risen for nine consecutive sessions and have gained 13% in that stretch.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then.
A year before, crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
Traders are anticipating that tomorrow's weekly inventory report by energy department will show crude and gasoline stockpiles to have dropped by 0.2 million and 0.5 million barrels last week respectively.
In the currency market on Tuesday, the dollar index, which weighs the strength of dollar against the basket of six other currencies rose by almost 0.2% following disappointing home sales data. Earlier, dollar index was down by almost 0.2%.
The National Association of Realtors in US reported on Tuesday, 5 January 2009 that pending home sales plunged a seasonally adjusted 16% in November 2009 from October 2009. The pending sales index, which had risen nine months in a row before falling in November, was 15.5% higher than in November 2008. October's increase was revised higher to 3.9% from 3.7% previously reported.
Among other economic data expected for the day, the Commerce Department in US reported on Tuesday, 5 January 2009 that U.S. factory orders increased in November, 2009. Factory orders increased 1.1% in November, greater than the 0.8% expected by the market. This was the seventh increase in the past eight months.
Among other energy products on Tuesday, February gasoline rose 1 % to $2.125 a gallon and February heating oil added 0.2% to $2.1941 a gallon.
Also on Tuesday, February natural gas lost 4.2% to $5.637.
At the MCX, crude oil for January delivery closed higher by Rs 3 (0.07%) at Rs 3,769/barrel. Natural gas for January delivery closed lower by Rs 7 (2.6%) at Rs 263.6/mmbtu.
Tuesday, January 05, 2010
Godrej Properties attracts 9% premium
Settles at Rs 534.55 on BSE
Godrej Properties settled at Rs 534.55 on BSE, a premium of 9.10% over the initial public offer price of Rs 490.
The stock opened at Rs 510, a premium of 4.10% over the initial public offer (IPO) price. It hit a high of Rs 586.70 and a low of Rs 500. The counter clocked 52.60 lakh shares on the BSE.
The current share price of Rs 534.55, discounts the company's half-year ended September 2009 annualised consolidated EPS of Rs 13.7 by a PE multiple of 38.01.
Godrej Properties had fixed the issue price at Rs 490 per share, at the lower end of the Rs 490-530 price band. The company had mopped nearly Rs 500 crore from the initial public offer (IPO) which remained open for subscription between 9 December and 11 December 2009. The Godrej Properties IPO was oversubscribed 4 times and received bids for 3.09 crore shares as against 77.32 lakh shares on offer.
The qualified institutional buyers (QIBs) category was oversubscribed by 7.44 times. However, the retail investors category and non institutional investors category, made up of corporates and high net worth individuals, both remained undersubscribed. The non institutional investors category was subscribed just 0.40 times and the retail investors category was subscribed only 0.37 times.
The issue constituted 13.5% of the post issue paid-up capital of the company.
On 8 November 2009, Godrej Properties raised Rs 89.95 crore by selling 16.97 lakh shares at Rs 530 each to four anchor investors - JF India Fund, JF Eastern Smaller Companies Fund, Ward Ferry Management and The Royal Bank of Scotland Plc.
Godrej Properties is in the business of real estate development. It currently has real estate development projects in 10 cities in India, which are at various stages of development.
The Mumbai-based firm plans to use the IPO proceeds for acquisition of land development rights, construction of forthcoming projects and repayment of loans.
In 2008, the company had planned to come out with the IPO but shelved it due to volatile market conditions in the wake of the global slowdown
The company's consolidated net profit rose marginally by 0.81% to Rs 75.63 crore on 9.75% fall in consolidated net sales of Rs 205.26 crore in the year ended March 2009 over the year ended March 2008.
NSE Bulk Deals to Watch - Jan 5 2010
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
05-JAN-2010,AMAR,Amar Remedies Limited,TRANSGLOBAL SECURITIES LTD.,BUY,182157,61.85,-
05-JAN-2010,ASTEC,Astec LifeSciences Ltd,AANGI SHARES & SERVICES PVT. LTD,BUY,105736,88.07,-
05-JAN-2010,DCMFINSERV,DCM Financial Ser Ltd,VINTAGE LEARING PVT LTD,BUY,100000,4.80,-
05-JAN-2010,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,BUY,1446693,14.55,-
05-JAN-2010,FCSSOFT,FCS Software Solutions Li,REGENT FINANCE CORPORATION PVT. LTD.,BUY,3108303,14.66,-
05-JAN-2010,GISOLUTION,GI Engineering Solutions,M/S RUKHMANI TRADERS,BUY,5,21.90,-
05-JAN-2010,GISOLUTION,GI Engineering Solutions,SHRI PARASRAM HOLDINGS PVT. LTD.,BUY,43740,21.47,-
05-JAN-2010,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,BUY,4031882,58.14,-
05-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,BUY,7656904,22.87,-
05-JAN-2010,ITI,ITI Ltd.,BLUE PEACOCK SECURITIES PVT LT,BUY,120150,50.12,-
05-JAN-2010,JAYAGROGN,Jayant Agro Organics Ltd.,KANCHAN CHHABRA,BUY,49019,118.38,-
05-JAN-2010,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,BUY,63280,222.87,-
05-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,BP FINTRADE PRIVATE LIMITED,BUY,100063,28.68,-
05-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,DB (INTERNATIONAL) STOCK BROKERS LTD.,BUY,161161,25.91,-
05-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,TRANSGLOBAL SECURITIES LTD.,BUY,144660,27.04,-
05-JAN-2010,MAGMA,Magma Fincorp Limited,NAMOKAR COMMERCIAL PVT LTD.,BUY,273395,161.57,-
05-JAN-2010,MAYTASINFR,Maytas Infra Limited,CLSA (MAURITIUS) LIMITED,BUY,30000,183.50,-
05-JAN-2010,RAJVIR,Rajvir Industries Limited,SUNEET LAL,BUY,19527,109.85,-
05-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,BUY,116924,88.09,-
05-JAN-2010,SELMCL,SEL Manufacturing Company,OM INVESTMENTS,BUY,109909,89.83,-
05-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,BUY,159326,357.84,-
05-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,BUY,48580,360.52,-
05-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,CHIMANLAL P. MATALIA,BUY,59148,359.20,-
05-JAN-2010,AMAR,Amar Remedies Limited,TRANSGLOBAL SECURITIES LTD.,SELL,182157,61.85,-
05-JAN-2010,ASIANELEC,Asian Electronics Ltd,SHAH INVESTMENTS FINANCIAL DEV & CON PRIVATE LIMIT,SELL,160000,40.78,-
05-JAN-2010,ASTEC,Astec LifeSciences Ltd,AANGI SHARES & SERVICES PVT. LTD,SELL,640,88.61,-
05-JAN-2010,DCMFINSERV,DCM Financial Ser Ltd,AMAZING CAPITAL SERVICES PRIVATE LIMITED,SELL,100000,4.80,-
05-JAN-2010,FCSSOFT,FCS Software Solutions Li,INNOVA ESERVICES PRIVATE LTD,SELL,7234668,14.50,-
05-JAN-2010,FCSSOFT,FCS Software Solutions Li,PATEL PRAKASHBHAI NARSINHBHAI,SELL,1400000,15.24,-
05-JAN-2010,FCSSOFT,FCS Software Solutions Li,REGENT FINANCE CORPORATION PVT. LTD.,SELL,3108303,14.95,-
05-JAN-2010,GISOLUTION,GI Engineering Solutions,M/S RUKHMANI TRADERS,SELL,49626,21.90,-
05-JAN-2010,GISOLUTION,GI Engineering Solutions,SHRI PARASRAM HOLDINGS PVT. LTD.,SELL,2500,21.80,-
05-JAN-2010,IFCI,IFCI Ltd.,ADROIT SHARE & STOCK BROKER PVT. LTD.,SELL,4000362,58.03,-
05-JAN-2010,ISPATIND,Ispat Industries Limited,JAYPEE CAPITAL SERVICES LTD.,SELL,8088653,22.86,-
05-JAN-2010,ITI,ITI Ltd.,BLUE PEACOCK SECURITIES PVT LT,SELL,120150,50.62,-
05-JAN-2010,JAYAGROGN,Jayant Agro Organics Ltd.,KANCHAN CHHABRA,SELL,96050,117.97,-
05-JAN-2010,KALINDEE,Kalindee Rail Nirman (Eng,MBL & COMPANY LTD.,SELL,63280,223.04,-
05-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,BP FINTRADE PRIVATE LIMITED,SELL,102751,28.12,-
05-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,DB (INTERNATIONAL) STOCK BROKERS LTD.,SELL,161161,26.01,-
05-JAN-2010,KAUSHALYA,Kaushalya Infrastructure,TRANSGLOBAL SECURITIES LTD.,SELL,140660,27.33,-
05-JAN-2010,MAGMA,Magma Fincorp Limited,CPIM STRUCTURED CREDIT FUND A 1000 LIMITED FDI,SELL,388731,160.60,-
05-JAN-2010,MAGMA,Magma Fincorp Limited,CPIM STRUCTURED CREDIT FUND A 1500 LIMITED FDI,SELL,111269,160.00,-
05-JAN-2010,MAYTASINFR,Maytas Infra Limited,CLSA (MAURITIUS) LIMITED,SELL,400000,181.45,-
05-JAN-2010,MIRZAINT,Mirza International Ltd.,CALEDONIA INVESTMENTS PLC,SELL,1055048,16.74,-
05-JAN-2010,NORTHGATE,Northgate Technologies Li,SWISS FINANCE CORPORATION (MAURITIUS) LIMITED,SELL,235000,27.76,-
05-JAN-2010,POLARIS,Polaris Software Lab Ltd,ORBITECH LIMITED,SELL,668792,187.85,-
05-JAN-2010,RAJVIR,Rajvir Industries Limited,SUNEET LAL,SELL,19527,109.77,-
05-JAN-2010,SELMCL,SEL Manufacturing Company,NIKON FINLEASE PVT. LTD,SELL,114824,88.25,-
05-JAN-2010,SELMCL,SEL Manufacturing Company,OM INVESTMENTS,SELL,109909,89.97,-
05-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,ADROIT FINANCIAL SERVICES PRIVATE LIMITED,SELL,159326,358.27,-
05-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,BP FINTRADE PRIVATE LIMITED,SELL,52080,361.30,-
05-JAN-2010,THINKSOFT,Thinksoft Global Ser Ltd,CHIMANLAL P. MATALIA,SELL,59148,359.79,-
05-JAN-2010,ZANDUPHARM,Zandu Pharma works Ltd,EMAMI INFRASTRUCTURE LIMITED,SELL,4800,5833.30,-
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