531162 Emami Ltd RD 23/03/2007 150% Dividend (100% Interim dividend + 50% Special ividend)
532254 Polaris Software Lab Ltd RD 5/4/2007 Second Interim Dividend
532823 Euro Ceremics Ltd RD 29/03/2007 12% Interim Dividend
Honda Motorcycle And Scooter India is thinking 100 cc. The company will invest Rs 800 crore to set up a new plant and ride into the volume game. CNBC-TV18 reports that scooters may not get too much attention.
Margin pressure is not the only worry that market leader Hero Honda has to contend with - competition is intense, and this time, closer home. Honda Motorcycle and Scooters India will soon ride into the 100 cc segment, which is Hero Honda's stronghold. The company will set up a second plant with an investment of close to Rs 800 crore to play the volume game. But what about cannibalisation?
"There is enough room in the market for both players to co-exist," informs Yukihiro Aoshima, President & CEO, Honda Motorcycles and Scooters India.
HMSI is targetting sales of over a million units by 2010. The company will focus on the motorcycle market, even though its Unicorn and Shine have not seen much success. Scooters may also be put on the backburner though it plans to introduce one new scooter this year. HMSI will also hit the market with high performance bikes in the 500 cc plus segment.
he Ruias have withdrawn the delisting offer of Essar Shippingowing to poor response and high discovered price,
Ruias withdrew the delisting offer due to poor response and high discovered price. The reverse book building closed on March 16.
The floor price for reverse book building was at Rs 31.62 per share. Maximum bids came in at Rs 50 per share.A number of bids came in at Rs 60 and went as high as Rs 75.
The Essar Group, through Cyprus-based subsidiary of Essar Global, holds nearly 76% stake in Essar Shipping.
Essar Shipping acquired two Very Large Crude Carriers (VLCC) during the year. Essar Shipping and Logistics (ESLL) raised USD 200 million in international banking markets.
Essar Shipping is an integrated sea logistics company with a special focus on transportation solutions. Its fleet accounts for almost 14% of India's shipping fleet and it owns the country's largest VLCC. It has a fleet of 30 vessels.
Abhishek Mills settled at Rs 91.15, a discount over the IPO price of Rs 100.
AMD Metplast settled at Rs 78.30 on BSE, a premium over the IPO price of Rs 75.
Jagjanani Textiles settled at Rs 23.15, a discount of 7.4% over IPO price of Rs 25.
Lawreshwar Polymers settled at Rs 14, a discount of 12.5% over the IPO price of Rs 16.
Crores of rupees hinge on India's performance this World Cup. Following the loss to Bangladesh, advertisers and telecasters alike fear that an early exit by India would mean huge losses.
Sony Entertainment Television is expected to make Rs 400 crore from World Cup. SET has signed eight sponsorship deals, including those with Nokia and Pepsi.
It had already sold a 10 second spot for upto Rs 3.5 lakh for India-specific matches, and upto Rs 1.5 lakh for a 10-second spot for non-India specific matches. Sony is hoping to sell its unsold inventory at a premium in later stages of the tournament.
Finance Minister P Chidambaram has said that he is hopeful that cement companies will moderate prices.
Chidambaram will meet cement manufacturers later this week on the price issue.
Bambino Agro
CMP - Rs. 12.50 BSE Code -519295
Bambino Agro is into food processing and manufactures Pastas, Macroni and Vermicilli. The company has been facing a tough time over the past few years, primarily on account of huge debt on its balance sheet, which it found difficult to service. The company has reached a settlement with the lenders and the debts have been restructured. The promoters have also agreed to bring in fresh funds into the company.
What we like about the company is its strong Brand and excellent distribution network. Infact, we could find the product occupying shelf space at not just big malls and supermarkets but was available at the neighbourhood "Kirana" stores too. (atleast in Delhi)
In the recent past, we have seen deals happening in the food processing sector at good valuations. Orkla Foods, Norway deal to buy MTR Foods is rumoured to have valued MTR at around Rs.400 crores. Similarly, Private equity players have taken stakes in Capital Foods (manufacturing Ching's Secret brand of sauces & Noodles), and Cremica Foods and these have received rich valuations.
Bambino has already achieved Sales of Rs.100 crores for first 9-months (Incidentally MTR Foods does Sales Revenue of Rs.150 crores).
Bambino with its market cap at just Rs. 8 crores looks attractive. The company of course had been bogged down with its own problems but now seems to be recovering. A stock for someone with High Risk appetite - however a potential multibagger.
CLSA’s Greed and Fear report will cut exposure to China and India from its Asia ex-Japan portfolio, but it believes that Asia is still in a secular bull market
The report states that problems in US will migrate from sub-prime to other mortgage markets and Asia still in a secular bull market.
According to it, exposure to Asian equities needs to be hedged.
Market watchdog Sebi plans to take the sheen off participatory notes and that too, not by cracking its whip, but by making the instrument lesser attractive to foreign investors. In this exclusive story, CNBC-TV18 finds that the regulator is also trying to use a similar approach to register hedge funds!
White money or black money? Hot money or the money of long term investors? As the debate on the colour of money becomes hotter - regulator Sebi is taking no chances. It plans to bring in more transparency into the foreign flows - and not by tougher regulations, but by better economics! And among the regulator's priority list is Offshore Derivative Instruments, or Participatory Notes.
M Damodaran, Chairman, Sebi calls, "PN route attttractive, because of low costs. Sebi is exploring making investments directly more attractive than PNs for foreign investors."
A participatory note is a derivative instrument issued by a Sebi-registered FII to those foreign investors, who want to buy Indian stocks. It is believed that many hedge funds use the PN route to invest in the Indian market. And so, regulator Sebi is also trying to convince these investors of the benefits of investing directly into the Indian market.
"Sebi is in dialogue with representative organisation that represent such investors. We are trying to tell them that those compying should apply and invest in their own name instead of using PN route. Over time, it will become more expensive to use other routes to invest in India," says Damodaran. That is an issue that many market experts and bankers will be keenly watching.
Many times in the past, the P-note route has been severly criticised for its opacity. That is because investors coming in via this route do not have to declare their identity. And so it is widely believed that the route has also been used to launder money. Many market participants say that while a cost disincetive will help Sebi partly, it may not necessarily control India's big P-note problem.
| 500039 | Banco Products (India) Ltd., | RD | 23/03/2007 | 75% Interim Dividend |
| 500040 | Century Textiles & Industries Ltd., | RD | 21/03/2007 | 37.5% Interim Dividend |
| 500123 | Schenectady-Beck India Ltd. | RD | 28/03/2007 | 35% Interim Dividend |
| 500252 | Lakshmi Machine Works Ltd., | RD | 23/03/2007 | 250% Second Interim Dividend |
| 500411 | Thermax Ltd. | RD | 21/03/2007 | 170% Interim Dividend |
| 500439 | Vardhman Holdings Limited | RD | 23/03/2007 | 20% Interim Dividend |
| 500477 | Ashok Leyland Ltd., | RD | 29/03/2007 | Interim Dividend |
| 500676 | GlaxoSmithkline Consumer Healthcare Ltd. | BC | 18/04/2007 | A.G.M. |
| 501061 | State Bank of Bikaner & Jaipur, | BC | 6/4/2007 | Interim Dividend |
| 502512 | Dhampur Sugar (Kashipur) Ltd. | BC | 30/03/2007 | A.G.M. |
| 504614 | Raipur Alloys & Steel Ltd., | BC | 24/03/2007 | 20% Interim Dividend |
| 505681 | Bimetal Bearings Ltd | RD | 29/03/2007 | Interim Dividend |
| 505807 | Rolcon Engineering Co. Ltd., | RD | 30/03/2007 | 30% Interim Dividend |
| 506260 | Anuh Pharma Ltd., | RD | 23/03/2007 | 140% Interim Dividend |
| 507685 | Wipro Ltd., | RD | 28/03/2007 | Interim Dividend |
| 507836 | Mac Charles (India) Ltd., | RD | 5/4/2007 | Interim Dividend |
| 509550 | Gammon India Ltd., | RD | 29/03/2007 | Interim Dividend |
| 513629 | Tulsyan NEC Ltd | RD | 30/03/2007 | Interim Dividend |
| 514175 | Vardhman Polytex Ltd., | RD | 26/03/2007 | Interim Dividend |
| 517300 | Gujarat Industries Power Co. Ltd | RD | 29/03/2007 | 15% Interim Dividend |
| 521163 | Zodiac Clothing Co. Ltd. | RD | 24/03/2007 | 50% Interim Dividend |
| 523384 | Maha Rashtra Apex Corporation Ltd | RD | 26/03/2007 | Stock Split (Cancelled) From Rs.10/- to Rs.1/- |
| 523696 | Malar Hospitals Ltd | BC | 22/03/2007TO | A.G.M. |
| 524667 | Savita Chemical ltd | RD | 28/03/2007 | 65% Interim Dividend |
| 526733 | Suashish Diamonds Ltd. | RD | 22/03/2007 | 15% Interim Dividend |
| 526817 | Cheviot Co.Ltd. | RD | 22/03/2007 | 80% Interim Dividend |
| 530239 | Suven Life Sciences Ltd. | RD | 2/4/2007 | Stock Split From Rs.2/- to Re.1/- |
| 531209 | Nucleus Software Exports Ltd | RD | 22/03/2007 | 35% Interim Dividend |
| 531600 | Gogia International Securities Ltd. | RD | 28/03/2007 | First Interim Dividend |
| 532430 | BF Utilities Ltd. | BC | 30/03/2007TO | A.G.M. |
| 532528 | Datamatics Technologies Ltd. | RD | 29/03/2007 | Interim Dividend |
| 532622 | GATEWAY DISTRIPARKS LTD. | RD | 22/03/2007 | 20% Second Interim Dividend |
| 532666 | FCS Software Solutions Ltd. | RD | 28/03/2007 | Interim Dividend |
| 590066 | K.C.P. LTD | RD | 21/03/2007 | 100% Interim Dividend |
| 590073 | WHEELS INDIA LTD | RD | 23/03/2007 | Interim Dividend |
IPO listing date for next week
Astral Poly Technik Limited IPO listing date
Listing On: Tuesday, March 20, 2007
BSE Script Code: 532830
NSE Symbol: ASTRAL
Listing in: B1 Group
ISIN: INE006I01012
Issue Price: Rs. 115 Per share (Face Value of Rs. 10/-)
Abhishek Mills Limited IPO listing date
Listing On: Monday, March 19, 2007
BSE Script Code: 532831
NSE Symbol: AML
Listing in: B1 Group
ISIN: INE004I01017
Issue Price: Rs. 100 Per share (Face Value of Rs. 10/-)
Jagjanani Textiles Limited IPO listing date
Listing On: Monday, March 19, 2007
BSE Script Code: 532825
NSE Symbol: JAGJANANI
Listing in: B1 Group
ISIN: INE702H01018
Issue Price: Rs. 25 Per share (Face Value of Rs. 10/-)
Lawreshwar Polymers Limited IPO listing date
Listing On: Monday, March 19, 2007
BSE Script Code: 532829
NSE Symbol: LEHAR
Listing in: B1 Group
ISIN: INE976H01018
Issue Price: Rs. 16 Per share (Face Value of Rs. 10/-)
AMD Metplast Limited IPO listing date
Listing On: Monday, March 19, 2007
BSE Script Code: 532828
NSE Symbol: AMDMET
Listing in: B1 Group
ISIN: INE005I01014
Issue Price: Rs. 75/- Per share (Face Value of Rs. 10/-)
Mukand Steel: A turnaround tale
The company came out of its losses to break even two years ago and last
fiscal it notched up Rs 86 crore operating profit, which is expected to
touch Rs 120 crore this fiscal.
Mumbai March 17 Some seven years ago, every imaginable financial woe
stalked speciality steel makers: shrinking working capital, rising raw
material prices, gloomy market off-take, debilitating losses and above all,
flagging employee morale.
Many of the steel utilities shut down, unable to contain the financial
haemorrhage. Mukand Steel, a Bajaj group company, was one of the afflicted,
having recorded Rs 100-crore loss four years ago.
But today it is a profit-making entity and has crossed over into the comfort
zone.
"Today our steel making facilities at Hospet and Kalwe (in Thane district,
Maharashtra) are working at full capacity and we are having to refuse
orders. We are also implementing a Rs 290-crore expansion programme,
including a new coke oven battery at Hospet," said Mr Neeraj Bajaj, Managing
Director.
Speciality steel, which comes in hundreds of grades, is mostly consumed by
the automobile industry and hence the fortunes of the two sectors are
closely linked.
Turbulent time
Seven years ago, when the auto industry was facing turbulent times, the
fortunes of the alloy steel makers also dipped.
The situation got aggravated when some 25 new plants, with a combined
capacity of three million tonnes, sprang up across the country. At that
time, the demand for such steel in the country was a measly 1.3-1.4 million
tonnes.
"As there are hundreds of grades of speciality steel, we could not even
export, as the export market demanded different grades. I remember that the
prices we got for our finished products were often below the variable costs.
During this period, 12-13 companies had to close down," Mr Bajaj said.
With time, things got a trifle better as the demand crawled up to two
million tonnes; the closing down of a few companies trimmed output.
Mukand took this opportunity to tighten its belt - an elaborate turnaround
strategy was put in place to shore up productivity levels, cut production
costs and sharpen quality.
"We empowered our workers and supervisors to form quality teams. Everybody
was involved in the quality initiative backed by incentives. Costs were
drastically reduced - not just operational costs, but also administrative
costs like travel."
Whiff of success
It was about three years ago the company smelt the first whiff of success.
Mukand came out of its losses to break even two years ago and last fiscal it
notched up Rs 86 crore operating profit, which is expected to touch Rs 120
crore this fiscal.
Profits were bolstered by a rise in demand, which is currently estimated at
three million tonnes.
The company's working capital markedly improved towards 2005-end when it
sold one million sq ft of real estate in the suburbs of Mumbai. It expected
barely Rs 80 crore from the sale, but as realty prices flared up, the
company garnered Rs 221 crore.
Expansion drive
And that set the tone for Mukand's expansion drive. The expansion programme,
which will add hot metal capacity of six lakh TPA, rolling mill capacity of
three lakh TPA and wire rod mill capacity of three lakh TPA, will be wrapped
up by 2007-end.
What is significant about the expansion is that Mukand will be getting
further into value addition, which, as Mr Bajaj said, should have been done
three years ago.
Earlier, the finished products from Mukand used to go all across the country
for five per cent value addition and then sold to the auto industry.
"Examples of such value addition are converting black bar to bright bar and
wire rod to wire. After the expansion, our Kalwe mills will be able to do
this, which will improve our margins."
It will also enable Mukand to get into overseas markets. Its ball bearing
steel has already been approved by SKF for its plants worldwide, while it is
in talks with Mico Bosch for supplies.
Distinct in nature
What makes the expansion programme distinct is the low capital cost - a
greenfield plant would cost Rs 40,000 per tonne of production while in
Mukand's case, it comes down to Rs 10,000 for every tonne of fresh capacity.
"The payback period (of the expansion) may be just 13-14 months. Normally,
for a greenfield facility, the payback could stretch to 4-5 years."
Now that Mukand is sitting pretty, will it be looking for mergers and
acquisitions?
"First, we would like to get the full benefits of our expansion. Only then
we will think of other options," he said, winding up a turnaround tale.
