Indian Stock Markets News Daily

Future Capital IPO sas got clearance from SEBI, according to CNBC-TV18 quoting sources. The company is looking to raise Rs 400 crore through IPO. Future Capital Holdings is offering 64.2 lakh shares via IPO and diluting 10.16% of equity. Promoters holding will reduced to 73% from current 83%.Currently the listed Pantaloon holds 62%, which will come down to 55% post IPO. Kishore Biyani’s stake will come down from 6.5% to 6% post IPO.(x)us Investments holds 8.6% in Future Capital. It has picked up stake in June 2007 at Rs 178 per share.

RHP is likely to be filled in the next 7-10 days

Time Technoplast, through its subsidiary acquires Bahrain-based Gulf Powerbeat (GPW). GPW has production facility at Manama, Bahrain for manufacture of high quality long life batteries. The total investment in Bahrain project is estimated at USD 10 million over next 3 years and shall be financed through a mix of equity contribution from NED and overseas debts, said the company in a release.

Time Technoplast had entered into the battery business early this year through acquisition of Hyderabad-based NED Energy, manufacturing valve regulated lead acid (VRLA) batteries mainly for high growth telecom sector.

To meet the huge demand of its products and to further bring new products for the fast growing automotive sector, NED is tripling its present capacity from 100 mn AH to 300 mn AH through project expansion at Jammu (J&K) which is expected to come on stream by Q2 FY09. This acquisition of GPW shall provide NED `ready to use` capacity which could be integrated fully with NED`s operation in next 3 months.

Shares of Time Technoplast gained 4.74%, to trade at Rs 997.

Arihant Foundations & Housing Board, at their meeting held on Dec. 26, 2007, recommended final dividend of 40%.The company reported net profit of Rs 280.13 million, on net sales of Rs 2,428.68 million for the financial year ended September 2007.Shares of the Arihant Foundations & Housing declined Rs 11.45, or 1.8%, to trade at Rs 626.05. Arihant Housing Dividend Record date is not yet announced.

Shares of Suven Life Sciences climbed 13.30% on receiving patent from the US Patent office.Suven Life Sciences announced that the US Patent office has granted the product patent (no: US 7,297,711) to the company. This is Suven`s first product patent granted in USA.

The patent product is useful in the treatment of neuro-degenarative disorders like Alzheimer`s Parkinson, Schizophrenia and Huntington`s.

Shares of the company were last trading up 14%, at Rs 53.80.

The members of Alchemist, at its annual general meeting (AGM) held on Dec. 27, 2007, declared dividend of 25 % or Rs 2.50 a share of the face value of Rs 10 each to the shareholders of the company for the year 2006-2007.

The members have also approved the increase in the borrowing powers of the board of directors.

Alchemist has varied business interests including steel, floriculture, healthcare, information technology, food processing and international business.

Shares of the company were last trading up Rs 0.4 at Rs 75 on the BSE.

ICICI Direct rated Visa Steel (CMP: Rs 49) as OUTPERFORMER with a price target of Rs 71. The company plans to set up its steel manufacturing facility with Steel Melting Shop and Bar & Wire Rod Mill with capacity of 500,000 tons per annum (tpa) by FY10. It is setting up a 300,000-tpa sponge iron plant & 50 MW Waste Heat Recovery Power Plant by FY08. Post capex, the analysts at ICICI Direct expect EBIDTA margins to expand to 23.40% by FY10. The company is also integrating backwards with captive ownership of critical raw materials such as iron ore, chrome ore, steam coal, coke & power, which would enable it to withstand raw material-related pricing pressures and keep its cost under control.

The analysts expect the company to emerge much stronger post completion of capex in FY10. They say that as the benefits of backward integration would start accruing along with higher capacity utilization, the company would align its cost structure to optimal levels. Further, the financial stability would improve from last quarter of FY10
when it value added products units gets commissioned. The company would be able to absorb additional depreciation and interest burden in lieu of the ongoing capex with much ease, as its cash flow situation would improve substantially from current levels. They expect operating margins to expand to a respectable 23.39% in FY10 and net profit margins to be 9.72% in FY10. Operating margins are expected to expand to respectable 23.39%.

The analysts have adopted replacement cost method for valuing the company as PE, EV/EBIDTA or other valuation multiples would not reflect the evolving business model of the company. They believe Visa Steel deserves to trade a premium to its replacement cost despite concerns regarding delays in project execution.

Eliminating the existing methodology of calculating foreign exchange earnings, the Ministry of Tourism, declared that its actual earnings this year till November stood at USD 9.16 billion, instead of USD 6.32 billion as projected earlier, reports agency sources.

The revised figures for the year 2006 will be USD 8.93 billion in place of current figure of USD 6.57 billion, up by 36%, as per new calculations.

Going by the revised methodology, the estimated foreign exchange earning for 2005 and 2006 will be USD 7.49 billion and USD 8.93 billion respectively in place of current estimates of USD 5.73 billion and USD 6.57 billion.

Jindal Steel Board Memebers, at their meeting held on December. 27, 2007, approved the sub-division of equity shares of Rs 5 each into 5 equity shares of Re 1 each.

Jindal Steel & Power reported a phenomenal jump in net profit for the quarter ended in September 2007. Net sales for the quarter rose 60.71% to Rs 12690.40 million compared with the corresponding quarter, a year ago. During the quarter, the company reported a 76.47% rise in profit to Rs 2774.70 million from Rs 1572.30 million in the same quarter last year.

Shares of Jindal Steel were last trading down Rs 125 or 0.84% at Rs 14,531.00 at the BSE.

Jindal Power, a wholly owned subsidiary of Jindal Steel & Power (JSPL), is planning to invest more than Rs 50 billion in adding another 1,320 mw to its thermal power project in Chhattisgarh, reports Business Standard.

The company is in the process of inviting bids from suppliers. Jindal Power is already in the process of setting up the coal-based 1,000 mw OP Jindal Super Thermal Power Plant near Tamnar in Chhattisgarh’s Raigarh district.

Maytas Infra plans to cap a big share of the USD 3-billion opportunity available in the transportation and installation (T&I) in the oil and gas industry, reports Business Standard.

Energy, is one of the four verticals that the company aims to even out in terms of value and operations in the next 3-5 years from the predominantly irrigation projects-led turnover at present. Maytas will focus on oil and gas operations under NELP V and NELP VI and is also looking at downstream opportunities, such as refinery construction and in transportation segment including airports and ports.

For its overseas foray, the company expects to get a couple of big building projects in the United Arab Emirates in the next couple of months.