Friday, August 05, 2005

Geodesic Information hits the roof on preferential issue


Geodesic Information Systems is locked up in the 20% upper circuit filter at
Rs 288.75 on volumes of 6.19 lakh shares.
This is also an all time high for the counter. There are pending buy orders
to the tune of 1.1 lakh shares by now.
The stock has more than doubled in a month from its closing of Rs 129.2 on
28 June 2005 to close at Rs 240.65 yesterday on the back of favourable
developments taking place in the company.
Geodesic Information has scheduled an AGM on 9 August 2005 for the approval
by shareholders to allott 10.90 lakh equity shares of Rs 2 each to M/s
Girvan Holdings LLC, USA who have exercised their warrants for conversion
into equity shares.
Also approval for the allotment of 54 lakh equity shares of Rs 2 each at a
premium of Rs 160 per share on preferential basis to various foreign
investors and mutual funds along with the issue of 13.40 lakh convertible
warrants, convertible into equity shares of Rs 2 each of the company @ Rs
162 to Rakesh Mathur (one of the independent directors of the company) will
be put forward for the shareholders approval.
The company earlier in the month of February 2005 issued bonus shares in the
ratio of 1:1 to the equity shareholders.
Geodesic Information Systems provides customized software solutions. It has
also developed various software like ticker, interoperable messenger etc.
The company signed a contract with a Japanese publisher for the use of its
instant messaging suite of products earlier in this quarter.
For the quarter ended 30 June 2005, the company posted a 133% jump in net
profit to Rs 7.66 crore (Rs 3.29 crore). Net sales also surged 133% to Rs
16.75 crore (Rs 7.2 crore).

RIL is pulled down under selling pressure


Reliance Industries came under selling pressure after the company said that
the proposal regarding demerger of its three businesses was still under
consideration and that no final decision has been taken in this regard.
The stock lost 0.6% to Rs 724.60. Weakness gripped the stock since 14:50 IST
soon after Reliance Industries’ clarification hit the market. Volumes were
high at 49.9 lakh shares on BSE.
Volatility gripped the stock recently. After surging ahead of Wednesday’s
AGM in Mumbai on expectation that the company might announce a major global
acquisition, the stock lost ground later as there was no such announcement
by the company in the AGM. After a sell-off in the counter on Wednesday, the
stock recovered from lower level on Thursday after Anil Ambani unveiled
preliminary details regarding demerger of RIL’s three businesses – power,
finance and telecom.
Earlier, the stock spurted in the past one month. From a low of Rs 613.85 on
7 July 2005, the stock spurted to a lifetime closing peak of Rs 741.95.
Strong Q1 June 2005 results and hike in price of most products from 1 August
2005, too, aided the stock’s surge in late July and early August 2005.
RIL today said its board at its meeting being held today would consider the
demeger proposal.
On Wednesday, Anil Ambani unveiled preliminary details regarding demerger of
RIL’s three businesses – power, finance and telecom. Anil Ambani said
shareholders in RIL will get about five shares in Reliance Capital and about
seven shares in Reliance Energy for every 100 shares held. Further, RIL
shareholders will get 100 shares in Reliance Communication Ventures (RCVL)
for every 100 shares held and 100 shares of Global Fuel Management (GFMS)
for every 100 shares held in RIL.
GFMS will be the holding company that will take care of the contract and
supply of natural gas from RIL for the requirement of REL. RCVL will be the
holding company for Anil Dhirubhai Ambani Group’s communications companies
that will include Reliance Infocomm, Reliance Communications Infrastructure,
Reliance Telecom and FLAG Telecom.
RIL is shedding its stake in the these companies as a part of the settlement
reached between Ambani brothers in June this year, whereby it was decided
that Mukesh Ambani will control RIL and IPCL and Anil Ambani will be in
charge of REL, RCL and Reliance Infocomm.

IVRCL Infrastructure added on a decent 2% to Rs 692, and registered 1.67 lakh shares as volumes on BSE so far today.


The stock went all the way to Rs 701.95 as soon as the announcement came in.
The low for the scrip as yet today is Rs 672 .
From Rs 486.6 on 30 June 2005, the stock rallied to close at Rs 678.85
yesterday on the back of booming construction sector.
IVRCL Infrastructures and Projects has stated that it has a healthy order
book position (as of now Rs 2,550 crore), which improved by a further Rs 600
crore following orders bagged by the power and water divisions. The new
order comprises power - Rs 460.20 crore, and water - Rs 139.80 crore.
The power order includes rural electrification of various areas. These
include works in Bhagalpur District of Bihar under Government of India
scheme of accelerated electrification of one lakh villages and one crore
households for Rs 53.58 crore. Gonda District in UP under Rajeev Gandhi
Grameen Vidyudikaran Yojana for Rs 192 crore. Rural electrification works
under accelerated Rural Water Electrification in Jalaun, Lalitpur, Hamirpur
and Mahoba, Bonda and Chitrapur districts of Uttar Pradesh for Rs 181.59
crore.
The water order is an EPC contract for pipeline project from Khorsam to
Sujalam Sufalam Spreading Canal awarded by Gujarat Water Resources
Development Corporation which amounts to Rs 111.50 crore.
IVRCL undertakes turnkey contracts for the execution of civil engineering
works. It is mainly engaged in the construction of bridges, canals, roads,
tenements, mass housing, spinning mills, industrial structures, towers,
chimneys, bridges, large-diameter pipelines, etc.
For the quarter ended 30 June 2005, the company came out with a 59.1% rise
in net profit to Rs 17.06 crore (Rs 10.72 crore). Net sales grew 28.3% to Rs
300.7 crore (Rs 234.4 crore).

Bank Of Baroda thick in Action over the last month


The stock was up 3% by mid-morning trade today to Rs 266.15. 3.8 lakh shares
changed hands in the counter on BSE. The scrip gained 3.6% on Thursday (4
August 2005) to Rs 258.35.
Bank of Baroda (BoB) stock witnessed a solid surge since late June 2005.
From a low of Rs 196.30 on 30 June 2005, the stock spurted 31.6% in less
than one month to Rs 258.45 by 27 July 2005. The stock witnessed a bout of
volatility later; it moved between Rs 249 to Rs 257 in four trading sessions
between 29 July 2005 to 3 August 2005.
The market has been agog with talks that the state run bank would
aggressively price its forthcoming IPO. BoB has already got approval of
finance ministry to tap the capital market with its follow on offer of
equity. Following this, government’s holding in the bank would be diluted
from 66% to 53%. BoB has significant capital raising program in the pipeline
to meet its capital needs arising out of ambitious asset expansion plans and
also to meet with Basel II capital.
BoB reported a 46% fall in Q1 June 2005 net profit to Rs 156.94 crore,
mainly due to treasury segment reporting operating and due to a significant
increase of 59% in provisions on account of depreciation on investments
arising due to shifting of securities from AFS to HTM category.
BoB like most state-run banks has cleansed its books over the past few
years. It now has low NPAs of 1.47% (as on end June 2005).

Thanks,
Abhijeet Selukar
QA Analyst
Cybage Software Pvt. Ltd.
(a CMM Level 3 company)
abhijeets@cybage.com
Direct +91 20 56041700 (ext: 733)
Mobile +91 98902 93631

http://www.cybage.com
AIM: abhijeetcybage

Takeover candidate status helps Falcon Tyres take wings


Falcon Tyres rose 15.6% to Rs 105.75 on volumes of 33,623 shares.
The counter hit a new high of Rs 109.8 in early morning trades. It had hit a
low of Rs 95 for the day so far.
From Rs 58 on 27 June 2005, the scrip of Falcon Tyres rallied to Rs
91.5-level yesterday on the possibility that a takeover of the company is
probable.
Reports suggest that the Hero Group and Metro are prime contenders for a
possible takeover of Falcon Tyres. Apollo Tyres and JK Tyres, who were
earlier in the race, no longer figure in the race for takeover, for
undisclosed reasons.
Bangalore based tyres company Falcon Tyres is part of the Manu Chabbaria
controlled Jumbo Group. The company markets its products under the Dunlop
brand name. Over 81% of the equity of the company is held by various Jumbo
group companies.
As per reports, Hero Group refused to deny or confirm the move for takeover,
while Metro has denied any such development. Falcon Tyres roughly commands
17% market share, and is one of the largest tyre manufacturers for
two-wheelers and scooters. It has a production capacity of 4.5 lakh tyres
per month.
For the quarter ended 31 March 2005, Falcon Tyres turned out a net profit of
Rs 0.13 crore on net sales of Rs 46.52 crore.

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