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REL clears buyback scheme @ Rs 525 per share
McDonald’s eyes HP and so does Taj |
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WB: Punjab should tap philanthropic NRIs
Bank of Punjab to boost forex biz
Software exports up
Filing return must even if tax nil
Bull charges on strong fundamentals
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REL clears buyback scheme @ Rs 525 per share
Mumbai, December 26 The objective of the buyback scheme, REL claimed, was aimed at reducing volatility of the company’s stock prices, deter speculative activity in the scrip and impact on REL scrip price, contributing to the maximisation of the its stock price. That apart, REL claimed that the buyback scheme sends a strong signal to the capital market on the undervaluation of REL’s stock price and reiterate confidence of the management in future growth prospects of the company. The share price of REL has closed below the buy back price for just eight trading days out of 140 trading days that the programme has been in existence. This fall below buy back price was only during the last five weeks, on account of extra ordinary events and developments related to the Reliance Group reported widely in the media. During this time, the REL board through a consultative process reviewed the buyback programme.It was decided that no buyback will be affected at this stage as the recent fall in share price is due to above stated extra ordinary events. The Board also decided that the terms of the buyback will remain unchanged and will be reviewed from time to time. In implementing the share buyback programme, the company will not take any steps that will allow speculators to take advantage of the current period of extra ordinary events related to the group.
— UNI
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All eyes on RIL board meeting today Mumbai, December 26 Though RIL sources hint that the meeting of the entire board is being held to determine the price for a share buyback, the agenda is confidential. RIL Chairman-Managing Director Mukesh Ambani and Vice-Chairman Anil Ambani, now in the eye of a storm over their public spat over ‘ownership issues’ of family holdings in the Rs 90,000 group, are both expected to attend the meeting. Last week, Anil Ambani called for a detailed discussion on the shareholding pattern of Reliance Infocomm in the board meeting, giving rise to speculation that the proceedings would be stormy. The industry is hoping that the spat between Mukesh and Anil Ambani is settled peacefully. The last trading session on Friday saw the Sensex brush the 6500 mark in hopes of a quick settlement. Spurring on the bulls is Mukesh’s decision to give up his 12 per cent sweat equity in Reliance Infocomm. The 500 million shares he picked up for a pittance is worth nearly Rs 7,000 crore. Anil Ambani, who had questioned Mukesh’s decision, is being persuaded to now join hands with his elder brother and work out a truce. Analysts expect RIL to announce a share buyback at the rate of Rs 550 or so per share at a time when the price of the Reliance scrip rules at around Rs 523 each.
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McDonald’s eyes HP and so does Taj Shimla, December 26 It is reliably learnt that McDonald’s is keen to have its joint on the Mall Road here and its officials have undertaken a survey to spot a prime location for its restaurant. “They are very keen to take over the Himachal Pradesh Tourism Development Corporation (HPTDC) owned ‘Ashiana’ restaurant located on the Ridge,” informed officials. The Confederation of Indian Industry (CII), with whom the Tourism department had jointly organised the conclave for inviting private partnership in promoting the state as a popular destination, have prepared a document listing the interest shown by various participants in properties. The representatives of McDonald’s, during their stay here, undertook a survey about the most popular restaurant and the number and kind of tourists visiting it in a day. “They have zeroed down on Ashiana, Himani and Davicos restaurants, all located on the Mall Road,” informed an official. On the other hand, the Taj Group is keen on taking over the HPTDC-owned Palace Hotel at Chail. Even though this property is running in profit but the thinking in the government is that by involving a private group the profitability can go up much further. The Taj Group has so far no major hotel in North India and with the scenario in Jammu and Kashmir still being uncertain, they are very keen on having a project here in Himachal. The Taj Group is also keen on taking on the project of setting up the proposed Golf course at Baddi in Solan district. Even though more than 100 private property owners had offered their hotels, old havelis, orchards and bungalows of the British Raj for being converted into resorts with the help of private partnership, it is the one dozen government properties, as a part of disinvestment plans in the HPTDC, which have attracted the attention and interest of big names in the hospitality industry. These include setting up of another Golf Course at Baragaon village in Kulu district and promoting water sports at the Pong Dam in Kangra.The Himalayan Ski Village, owned by the Ford Motor Company, has already expressed desire to set up a Rs 2,000 crore winter sports resort in the state.
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WB: Punjab should tap philanthropic NRIs Ludhiana, December 26 A report by the World Bank says that the state probably ranks behind only Gujarat and Kerala in terms of migration as measured by the number of people of Indian origin (PIO) living outside India. Among the 20-million strong Indian diaspora it is believed that 10-5 per cent are PPOs, the report says. Mentioning the general belief that Punjabi migrants have a higher per capita income level than the average Indian migrant, the bank says they harbour a strong commitment to maintain their own cultural and linguistic heritage and seek to preserve their links with their families in India. According to the report, Punjabi migrants have risen to become one of the highest earning and best educated groups in their host countries and have achieved eminence in a variety of fields. “Many wealthy Punjabis have individual trusts and charities for projects pertaining to health, education or infrastructure in their villages in Punjab.” Emphasising on leveraging their philanthropic activities, the World Bank says the Punjab Government can play a vital role in strengthening links between PPOs and their families in the state and thereby leverage such activities of its diaspora to the greater benefit of the state.
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Bank of Punjab to boost forex biz Chandigarh, December 26 Mr Tejbir Singh, Executive Director, Bank of Punjab, said the bank today is the number one exporter of foreign currency in the country. It did foreign exchange business of Rs 1,700 last year. It will double its foreign exchange bureaus over the next three years. “Our exchange bureaus are handled as a separate product and are a bank within a bank. We intend to offer office/home delivery of currencies and travellers cheques beyond office hours. We are also reaching out to NRIs and other clients, offering them better rates and personalised service,” he added. In another service bound to help foreign tourists and NRIs, the bank has tied up with Western Union Financial Services to provide money transfer in Bank of Punjab locations. Going a step ahead, the bank has opened a representative office at Toronto in Canada. According to Mr Tejbir Singh, “Going forward fee income and products will take centrestage in business and profitability of the bank. Our focus is on such new avenues as cash management services, facilitating faster transfer of money of India, travel-related foreign exchange, insurance and other activities which would provide the bank additional sources of income.” The bank will open eight more offices — in Tanda, Mahilpur, Samana, Hisar, Sirsa, Baddi and Bikaner, by March 2005. It had recently opened branches at Muktsar, Fazilka, Mansa, Barnala, Ropar, Baghapurana and Tarn Taran, thus retaining the doubling of its network every three years. The branches will offer ebank services through the Internet, mobile phone, ATM; mobile wallet (payment through mobile phone), 24-hour telebanking and utility bill payments through ATM/Internet. The bank has started distributing LIC products and expects to generate a substantial premium from this line.
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Software exports up New Delhi, December 26 In a press statement issued here today, Mr D.K. Sareen of the ESC said,”the total exports of computer software and ITES are likely to cross the annual target this year. The exports have grown by 46.55 per cent during the first six months this fiscal (April-September 2004) as against a target of 44.5 per cent. Most of the exports take place during the second half of the financial year.” Mr Sareen said that according to ESC projections, software and ITES exports are pegged at Rs 78,650 crore for 2004-05.That will be 36 per cent higher than the exports achieved during last fiscal, Rs 58,000
crore.
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by J.C. Anand
Bull charges on strong fundamentals
During the last fortnight both Sensex and Nifty have been leaping up to set new records. The Sensex crossed 6400 points during the week ending December 19 and it closed at 6498 points after touching 6500 points record last Friday. There are many analysts who expect the Sensex to cross the 7000-point mark in the long run. Merrill Lynch has stated, after a brief survey of fund managers, that 64 per cent expect the Sensex to cross 7000 points, with 27 per cent expecting the Sensex to be 6999, and 9 per cent expect it to be 6200 - 6599 points. The general view is that the FII funds are driving the bull to the record levels. But there are some other factors too that are sustaining the bull market. An interesting analysis made by the Economic Times, based upon a survey of 200 companies, ranked in terms of market cap on December 15, 2004, indicates that about 3/4th of the companies in the sample have witnessed an increase in their stock prices on the basis of their higher EPS ratios. The PE ratios are still reasonable low. In other words, apart from the inflow of FII funds, the fundamentals of the corporate sector are strong and sound. The textile sector companies have scored almost 50 — 100 per cent gains in their market prices more on the expectation that their export earnings would jump up after January 1, 2005 when the quota limits are lifted in the USA and European countries than on their present performance. The news that the Reliance Industries would announce a buyback of its equity shares on December 27, after its Board of Directors meets is another factor for the bullish flavour in the market. Reliance Industries has a high weight in the composition of the Sensex index. But it is not known as yet what would be the nature of the buyback announcement. Even in 2000, Reliance Industries had announced a buyback at a price not exceeding Rs 303, but did not buy back the shares even when the market price went below Rs 303. Sesa Goa has announced a bonus issue in the ratio of 1:1 and an interim dividend of 50 per cent. ONGC has announced an interim dividend of 200 per cent. Gail’s interim dividend is 40 per cent and BPCL’s interim dividend is at 50 per cent. There has been an announcement that the Reserve Bank of India has given an in-principle approval to the proposed merger of the Bank of India with the Union Bank of India. This has moved up the market price of the Union Bank share to a record level. The long-term shareholders who hold stakes in bank shares should not book profit at present for there is a strong move for the consolidation in the bank sector. Karur Vyasya Bank scrip has also moved up to Rs 468. UK-based Scottish and Newcastle Company (SNN), the fifth largest brewer in the world, will pick up 37.5 in the equity holding of United Breweries (UB) — 17.5 per cent directly from the UB and another 20 per cent in open offer of the Indian shareholders. This means that both SNN and UB will have equal holding in the company — 37.5 per cent each. Selective profit booking is advised in those shares which have weak fundamentals and doubtful managements. However, Tata group companies should be held on a long-term basis. At least, for the present, Reliance Industries shares should not be sold and the December 27 announcement of buyback should be awaited. Many of scrips recommended in this column have perked up. The shares of Balmer Lawrie Van Leer, BOC, Gujarat NRE Coke, N. Lignite, Glaxo Pharma, Tisco and Larsen & Toubro have moved up.
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DLF plans malls in Punjab, Chandigarh |
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