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Glodyne Technoserve recommendes bonus issue of equity share…

The board of Glodyne Technoserve has recommended bonus issue of equity shares in ratio of 1 equity share of the company of Rs 10 each for every 1 equity share of the company held by the shareholders of the company.

This was recommended at the board meeting held on 30 June 2009.


AIG shares fall down 20% 0n 1for 20 reverse stock news…

American International Group Inc shares fall down nearly 20 percent on Wednesday following a 1-for-20 reverse stock split by the troubled insurer.

 

AIG disclosed its plans for the reverse stock split in a regulatory filing on May 21, but the news was overshadowed by an announcement that same day that Liddy planned to step down as CEO and chairman once successors were found.


Kabirdas motor company to raise 60cr IPO…

Chennai-based Kabirdass Motor Company, which sells Xite electric scooters, is planning to raise Rs 60 crore through an IPO. The issue will be open in 45 to 60 days, said Mr Murali Kabirdass, Managing Director.

 

·         The fund-raising is primarily meant to set up a manufacturing facility with two-lakh-unit capacity at Sriperumbudur near Chennai. The project cost is Rs 102 crore. A Rs 20-crore loan from Union Bank and Rs 20 crore through equity funding will meet the rest of the project cost. The new facility is expected to be operational in eight to 10 months.

·         The company – which makes four 250-watt scooters and one 1,500-watt scooter – has 33 dealers spread across Tamil Nadu, Karnataka and Andhra Pradesh. Kabirdass Motor plans to expand its dealership network to other States, including Kerala and Maharashtra.

·         Since its inception in February 2007, the company has sold around 2,000 electric scooters, of which 90 per cent were in rural Tamil Nadu. The target buyers of its 250-watt variants are teenagers who typically travel less than 20 km a day. A driving license is not required to ride this low-power scooter.

·         The company is in talks with a few European electric vehicle makers to acquire the licence to manufacture and market their products in India.

·         The company is also in talks with Exide Industries and Amara Raja, which are developing batteries for electric vehicles. Indian electric vehicle makers depend on Chinese companies for batteries.


JSW Group plansIPO for its Cement & Energy companies…

The JSW group may revive its initial public offering (IPO) plans for its two companies, JSW Cement and JSW Energy.

 


GEE recommendes second bonus issue 1:4 after jan 1:5 Issue…

At the time of announcing results, the board of directors of the company recommended a 1:4 bonus. This is the second bonus issue from GEE in 2009. The company had issued a 1:5 bonus in January 2009. On BSE, 18,030 shares were traded in the counter. The stock had an average daily volume of 5,654 shares in the past one quarter.

 


VST Tiller Tractor announces Stock split…

BSE Sensex was up 105.04 points, or 0.71%, 14,869.68 today. This is the second bonus issue from VST Tiller Tractors (the company is engaged in the manufacture of power tillers, tractors and diesel engines). The company had issued a 1:2 bonus in October 1998.

 


Dena Bank - 10% Upside in 3 months

Investment rationale

Branch distribution in rich belts helps CASA accumulation

For FY09, CASA for the bank stood at 36%. This is still one of the best in the small PSU banking universe. The major reason for such a consistently high CASA ratio is that majority of its branches are located in the western region especially in Gujarat and Maharashtra with a tally of 480 and 242 branches, respectively. Out of 1184 branches in FY09, these branches are CASA rich by nature.

Value buy even after recent run up

Let us consider a stress case scenario where all the GNPA for the bank turns bad. Assuming the GNPA to be at 2.6% for FY10E and 2.2% for FY11E at Rs 890 crore and Rs 953 crore, respectively, the adjusted net worth of the bank stands at Rs 2521 crore for FY11E, resulting in ABV of Rs 65 per share after considering a dilution in FY10E. We believe the stock can command 0.9x ABV (stress case) of Rs 65. We value the stock at Rs 58.5 per share.

Business momentum to stay steady, recapitalization expected in FY10E

The total business for the bank crossed Rs 72000 crore for FY09. The bank expects total business of around Rs 125,000 crore, by FY12E owing to its branch expansion plans and by enhancing efficiencies in its existing network. However, we feel the economic slowdown will delay the plans by a couple of years. We expect the total business to cross Rs 100000 crore in FY11E. We have considered recapitalization of Rs 500 crore from the GoI, which currently
owns 51% in the bank. This will lead to future balance sheet growth in FY10E.


Adani Power ltd(APL) to hit market with IPO in July…

Adani Power Ltd (APL) is likely to hit the capital market in the third week of July to collect over Rs 2,000 crore, depending on the price band, to part-fund its projects.

 


Mahindra Holidays & Resorts IPO subscribed 100% on final day…

The initial public offer of Mahindra Holidays & Resorts, through which it is expecting to raise up to Rs 301 crore, got fully subscribed on the final day of offer on Friday.  It was subscribed 20% on day one, 40% on day two & 100% on final day.

 

However, retail investors showed resilience and preferred to stay away from investment till yesterday.


Mahindra Holidays IPO subscribed 40% second day of issue…


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