VoteUpIndia » Market http://voteupindia.com Top News of India... Wed, 14 Sep 2011 19:03:48 +0000 en hourly 1 http://wordpress.org/?v= Rupee recovers marginally against dollar http://voteupindia.com/rupee-recovers-marginally-against-dollar/ http://voteupindia.com/rupee-recovers-marginally-against-dollar/#comments Tue, 29 Mar 2011 20:03:53 +0000 superblogger http://voteupindia.com/?p=9493
The rupee on Tuesday closed five paise up at 44.78/79 against the US dollar on bullish local equities and easing of crude oil prices.

Dealers said that the main reason behind the rupee rise was distinctly firm local equities and also increased portfolio investments.

Fresh sale of dollars by exporters and some banks also supported the rupee recovery, they added.

The Bombay Stock Exchange benchmark today shot up by 177.66 points or 0.94 per cent and a total 1,281.75 points or 7.18 per cent in straight six-session of gains on sustained Foreign Institutional Investors (FIIs) buying, amid further easing of oil prices that reduced fears of inflationary pressure and hike in interest rates.

FIIs injected USD 681.85 million in last five days since March 22.

The US crude futures was trading above USD 103 a barrel in London.

“Rupee traded quiet positively through out the day supported by positives in the equity market and strong capital inflows while some dollar demand by oil importing companies kept a check on rupee strengthening further,” Alpari Forex (India) CEO Pramit Brahmbhatt said.

The trading range for the USD/INR will be between 44.55-
45.05 on Wednesday, he added.

At the Interbank Foreign Exchange (Forex) market, the local currency opened better at 44.81/82 a dollar from last close of 44.83/84 and immediately touched a low of 44.8250.

Later, it rebounded to the day’s high of 44.6650 before falling back on late dollar from importers to meet their month-end demand to conclude at 44.78/79. Yesterday, it had dropped by 16 paise.

The dollar gave up gains against euro in New York market on Monday following remarks from European Central Bank about expectations of rising interest rates as soon as next month.

However, the dollar index, gauging six major currencies, was up by 0.05 per cent in European market today.

The rupee premium for the forward dollar finished lower on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in August closed weak at 135-137 paise from 138-140 paise on Monday.

Far-forward contracts maturing in February fell back to 274-1/2-276 paise from 280-282 paise yesterday.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.67 and the euro at Rs 63.09.

The rupee remained firm and ended at Rs 71.48/50 against the pound sterling from Monday’s close of Rs 71.64/66 and also improved further against the yen to Rs 54.49/51 per 100 yen from Rs 54.90/92 previously.

It turned negative against the euro to settle at Rs 62.97/99 from last close of Rs 62.94/96.
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]]> http://voteupindia.com/rupee-recovers-marginally-against-dollar/feed/ 0 Tata Coffee rockets 20%, stock hits upper limit on BSE http://voteupindia.com/tata-coffee-rockets-20-stock-hits-upper-limit-on-bse/ http://voteupindia.com/tata-coffee-rockets-20-stock-hits-upper-limit-on-bse/#comments Fri, 14 Jan 2011 12:30:02 +0000 Mudit Agrawal http://voteupindia.com/?p=9157
MUMBAI: Boosted by the tie-up with US coffee chain Starbucks, Tata group firm Tata Coffee today extended its morning gains and advanced by 20 per cent to touch its upper limit on BSE.

Defying the broad bearish market sentiment, shares of Tata Coffee reached the upper limit of Rs 555.70 on BSE, translating into a gain of 20 per cent.

The stock displayed a similar uptrend on the National Stock Exchange where it zoomed by 20.01 per cent to Rs 557.50. In terms of volume, over 16 lakh crore shares of the company were traded on the bourses.

Starbucks Coffee Company and Tata Coffee yesterday signed a non-binding memorandum of understanding (MoU) to collaborate in sourcing and roasting of coffee beans sourced from Tata’s Coorg plantation and developing the latter’s retail outlets and hotels in India.

Starbucks is the world’s biggest coffee chain managing over 16,000 stores and operates in more than 50 countries.

Meanwhile, after a choppy session, the BSE benchmark index Sensex closed lower by 322.38 points or 1.68 per cent at 18,860.44 points.
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]]> http://voteupindia.com/tata-coffee-rockets-20-stock-hits-upper-limit-on-bse/feed/ 0 Sensex plummets 322 points to end below 19,000 on rate hike fears http://voteupindia.com/sensex-plummets-322-points-to-end-below-19000-on-rate-hike-fears/ http://voteupindia.com/sensex-plummets-322-points-to-end-below-19000-on-rate-hike-fears/#comments Fri, 14 Jan 2011 11:35:02 +0000 Mudit Agrawal http://voteupindia.com/?p=9134
Today bears ruled the Dalal Street, with Sensex plunging over 300 points, below the crucial 19,000 mark for the first time since November 2010 on increasing inflation and on concerns that the Reserve Bank may hike interest rates.

At the close, the benchmark 30-share index, BSE Sensex declined 322.38 points or 1.68% at 18,860.44 with 25 components registering drop. Meanwhile, the broad based NSE Nifty fell by 97.35 points or 1.69% at 5,654.55 with 43 components registering drop.

“After a really bad start to 2011, one would have thought there will be some bounce back. But, as it happens so many times, the market has its own way of surprising the participants. Weaker than expected IIP data coupled with the rise in inflation were the main culprits this week. Clearly, the Indian economy is confronting a few headwinds as of now and one needs to be careful in the near term before there is more clarity,“ said Amar Ambani, Head of Research, IIFL.

Sensex Movers

Housing Development Finance Corporation contributed fall of 42.71 points in the Sensex. It was followed by H D F C Bank (42.07 points), Reliance Industries (32.03 points), Larsen & Toubro (27.37 points) and I C I C I Bank (23.76 points).

However, Wipro contributed rise of 6.24 points in the Sensex. It was followed by Tata Power Company (5.86 points), Mahindra & Mahindra (0.51 points), Hindustan Unilever (0.27 points) and Grasim Industries (0.11 points).

Biggest gainers in the 30-share index were Tata Power Company (2.11%), Wipro (1.77%), Jindal Steel & Power (0.31%), Mahindra & Mahindra (0.13%), and Hindustan Unilever (0.07%).

On the other hand, Tata Motors (4.62%), H D F C Bank (4.16%), Housing Development Finance Corporation (3.95%), Sterlite Industries (India) (3.45%), Bajaj Auto (3.09%), and Maruti Suzuki India (2.88%) were the biggest losers in the Sensex.

Mid & Small-cap Space

The BSE Mid and small caps outperformed their larger counterparts declining 1.18% and 1.04% respectively.

The major losers in the BSE Midcap were A I A Engineering (2.18%), Alstom Projects India (1.97%), A B G Shipyard (1.45%), A2Z Maintenance & Engineering Services (1.15%) and Aban Offshore (0.97%).

The major losers in the BSE Smallcap were A K Capital Services (4.76%), Provogue (India) (3.23%), INEOS ABS (India) (2.42%), Abhishek Industries (1.91%) and Aarti Industries (0.17%).

Sectors in Limelight

The Realty index was at 2,524.31, down by 72 points or by 2.77%. The major losers were Indiabulls Real Estate (3.69%), D L F (2.3%), D B Realty (1.93%), Anant Raj Industries (1.49%) and Ackruti City (0.33%).

The Bankex index was at 11,850.60, down by 319.43 points or by 2.62%. The major losers were Canara Bank(4.49%), H D F C Bank (4.16%), Bank Of India (2.62%), Federal Bank (0.72%) and Bank Of Baroda (0.33%).

The Metal index was at 16,371.60, down by 410.21 points or by 2.44%. The major losers were JSW Steel (3.29%), Hindalco Industries (2.09%), National Aluminium Company (1.87%), Bhushan Steel (1.38%) and Hindustan Zinc (1.35%).

The Auto index was at 9,259.02, down by 219.13 points or by 2.31%. The major losers were Ashok Leyland (4.28%), Apollo Tyres (3.9%), Bajaj Auto (3.09%), Bharat Forge (1.69%) and Amtek Auto (0.27%).

Market Breadth

Market breadth was negative with 889 advances against 2,028 declines.

Value and Volume Toppers

State Bank Of India topped the value chart on the BSE with a turnover of Rs. 2,096.58 million. It was followed by Reliance Industries (Rs. 1,137.74 million), Tata Steel (Rs. 977.96 million) and Larsen & Toubro (Rs. 844.65 million).

The volume chart was led by Shree Ashtavinayak Cine Vision with trades of over 70.28 million shares. It was followed by Suzlon Energy (9.05 million), Ispat Industries (6.04 million) and Alok Industries (5.01 million).

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]]> http://voteupindia.com/sensex-plummets-322-points-to-end-below-19000-on-rate-hike-fears/feed/ 0 SAIL’s Dec quarter net slips 34% to Rs 1,107 cr http://voteupindia.com/sails-dec-quarter-net-slips-34-to-rs-1107-cr/ http://voteupindia.com/sails-dec-quarter-net-slips-34-to-rs-1107-cr/#comments Thu, 13 Jan 2011 15:12:21 +0000 Mudit Agrawal http://voteupindia.com/?p=9100
Steel Authority of India (SAIL) on Thursday reported a 34 per cent decline in its net profit at Rs. 1,107.47 crore for the October-December quarter as against Rs. 1,675.55 crore recorded in the year-ago period.
However, revenue during the quarter rose by 17.5 per cent to Rs. 12,276.81 crore from Rs. 10,447.63 crore recorded in the corresponding quarter of the previous fiscal.

Profit before tax for the period stood at Rs. 1,628 crore.

The company suffered dip in the profit margin largely due to the skyrocketing price of coking coal. SAIL chairman CS Verma said, “The rise in prices of coking coal has heavily impacted the profitability. We lost Rs. 1,205 crore solely due to this price rise.”

He expects the coking coal prices to remain northbound till the next fiscal. Flood in Australia will also add to the loss, he said.

Shares of the company closed at Rs. 172.90, down 2.26 per cent from previous close on the BSE.

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]]> http://voteupindia.com/sails-dec-quarter-net-slips-34-to-rs-1107-cr/feed/ 0 European shares flat; miners dip, Spanish banks up http://voteupindia.com/european-shares-flat-miners-dip-spanish-banks-up/ http://voteupindia.com/european-shares-flat-miners-dip-spanish-banks-up/#comments Thu, 13 Jan 2011 15:09:09 +0000 Mudit Agrawal http://voteupindia.com/?p=9099
European shares were little changed by midday trade on Thursday after 28-month highs a day earlier as miner-led declines and some market consolidation offset a good response to Spain’s bond auction.

The market was waiting for a news conference starting at 1330 GMT by ECB President Jean-Claude Trichet, who will talk about the reasoning behind the bank’s decision to hold rates unchanged.

The Bank of England also left its interest rates unchanged.

Analysts said the Spanish auction results were broadly priced in, with investors taking profits earlier in the session.

Mining shares were among the top decliners as key base metals prices fell. Copper slipped after two days of strong gains on worries about waning demand in top metals consumer China, which approaches towards its new year holidays.

The STOXX Europe 600 Basic Materials index .SXPP fell 0.9 percent, while Antofagasta (ANTO.L) dropped 1.3 percent.

At 1249 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was little changed at 1,163.75 points after jumping 1.5 percent to a 28-month high in the previous session.

“The auctions are no longer a market influencing factor as people know that the ECB is there to support the auctions and, for the time being, the auctions are going to go well,” said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

“These auctions, when they go well will not necessarily help the market going forward any more. But if they go wrong, they will have severe negative repercussion on the market.” Spain attracted strong demand at the auction of five-year bonds, while the yield came in lower than expected, reflecting growing hopes that euro zone governments will take fresh action to ease the region’s debt crisis.

Analysts said that the euro zone debt crisis was not going to be resolved in the near term, but would allow the peripheral European governments to implement austerity measures and bring down debt levels.

Spanish banks rose sharply after the bond auction. Banco Santander (SAN.MC) and BBVA (BBVA.MC) climbed 4.7 percent and 6.8 percent respectively, while Spain’s IBEX35 .IBEX rose 2.6 percent.

“There’s a bit of consolidation going on,” a London-based trader said, “and the volumes are not that great and the retail results were mixed.”

Tesco (TSCO.L) fell 2.4 percent after the world’s No.3 retailer missed Christmas sales forecasts, saying disruption from severe winter weather hit sales of non-food goods in its main British market. [ID:nLDE70C0G7]

Investors waited for U.S. weekly jobless claims after a recent pick up in U.S. economic data that prompted a number of economists to lift growth forecasts. [ID:nN12190516]

Among individual movers, Spain’s Repsol (REP.MC) rose 4.7 percent after reports India’s Essar group is studying an acquisition of 5 percent of the company. [ID:nSGE70CB3K]

Home Retail (HOME.L) gained 9.2 percent as the owner of the Argos catalogue chain said sales have fallen less than analyst forecasts.

Across Europe, Britain’s FTSE 100 .FTSE fell 0.3 percent, Germany’s DAX .GDAXI was flat and France’s CAC40 .FCHI rose 0.4 percent.
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]]> http://voteupindia.com/european-shares-flat-miners-dip-spanish-banks-up/feed/ 0 Nifty clings to 5750; experts fear freefall if 5700 breaks http://voteupindia.com/nifty-clings-to-5750-experts-fear-freefall-if-5700-breaks/ http://voteupindia.com/nifty-clings-to-5750-experts-fear-freefall-if-5700-breaks/#comments Thu, 13 Jan 2011 15:01:44 +0000 Mudit Agrawal http://voteupindia.com/?p=9098
It was a very tough day on Dalal Street today. The brakes were slammed on yesterday’s pullback as the market grappled with weaker than expected earnings from Infosys and selling pressure in the financials. The Sensex shut shop today at 19,182 – down 351 points.

The big disappointment was Infosys today as it kicked off earnings season. Its Q3 results came in lower than expected, and stock tanked 5%. Volume growth at 3% disappointed the street although the management mentioned that industry will see growth of 18-20% and return to normal next fiscal.

The Nifty started off mildly choppy and until noon it held onto the 5800 mark. It was only post that the market saw intense selling pressure and tanked 100 points to close bang at that psychological 5750 mark.
Among sectors, banks were the weakest link today. The Bank Nifty was down close to 4%, influential stocks like SBI, ICICI Bank, were down 4%. All eyes will be on that crucial inflation number tomorrow. Some other weak links included metal stocks like SAIL, Tata Steel and JSPL. Some winners today included ONGC and Cairn, holding their head above water and cement stocks. The only ray of hope was that midcap index did not sell off severely and relative outperformance and market breadth at 1: 2 on a day when the index was down 2%.
The start to the year has been shaky, to say the least, contrary to general expectations. Several factors including inflation and hardening interest rates have contributed to the downfall. What the market is now looking forward to is the results season, which will help the market gauge the impact of a lot of the macroeconomic variables on corporate earnings, which will be followed by policy response by the Reserve Bank on a lot of these variables.
Specifically on levels, the 5700 level has been a crucial level for the Nifty. Although the market has seen support twice at that level, experts believe it may not be lucky a third time round. Said Jatinder Sharma, Partner, Equity Strategists, “I think the market has been extremely volatile for the past three sessions and it has successfully tested the 5700 level twice. But I believe that it may not be third time lucky as one leg of the market i.e. the IT segment which was propping up the index for the past one and a half months is now on a weak wicket.”
With yesterday’s pullback having been convincingly quashed today, Technical analyst Anil Manghnani of Modern Shares & Stock Brokers explained that the Nifty’s core structure has been significantly weakened, and 5700 may not mean much and could break soon. “Each time the Nifty comes back to 5700, it has weakened the market’s structure. “It’s consolation that the market held 5700 but more and more sectors and stocks are getting weak. You are getting less and less stocks that can take this market up. It seems like the pressure is a lot more today. If we compare the prices today to about three weeks back when the index was at the same price it is much lower. That itself tells you that there is a problem. So I am getting a little worried and I don’t think 5,700 means anything now.” He is also concerned that in yesterday’s 300-point pullback, FIIs were net sellers, and sees considerable pain for the markets going forward.
Ambreesh Baliga of Karvy Stock Broking sees 5700 as a crucial support. A breach of 5700 would see the market falling 500-600 points, Baliga said. “I just hope that does not happen because it will clearly depend on the newsflow, which come at that point of time. But for the time being that is a very good support level. We still believe that the market would be in this range of around 5700 to 5900-5950,” Baliga added.
Mitesh Thacker, Technical Analyst, miteshthacker.com said today’s close above 5750 is significant. “In the declines in the month of November, we saw this level play out very nicely in this entire 50-point range of 5750 to 5695 I think has acted time and again on the intraday basis or on a closing basis acted as a good support.” However, Thacker too feels that the level may be breached over the next few sessions. “All the volatility indicators have shot up which means that markets will be choppy like what we have seen for the last couple of days.”
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]]> http://voteupindia.com/nifty-clings-to-5750-experts-fear-freefall-if-5700-breaks/feed/ 0 Silver regains on global cues; gold declines http://voteupindia.com/silver-regains-on-global-cues-gold-declines/ http://voteupindia.com/silver-regains-on-global-cues-gold-declines/#comments Tue, 11 Jan 2011 13:07:28 +0000 Mudit Agrawal http://voteupindia.com/?p=9048
A divergent trend developed on the bullion market today as silver recovered on rising demand from industrial units and gold declined on reduced offtake at higher rate.

While silver rose by Rs200 to to Rs45,000 per kg, gold shed Rs10 to Rs20,640 per 10 grams in mixed pattern of trade.

Market analysts said the silver remained in demand among industrial units and coins manufacturers on expectations of more hike in its prices in coming days.

They said buying in gold was restricted at existing high levels.

Silver ready rose by Rs200 to Rs45,000 per kg and weekly-based delivery by Rs125 to Rs44,550 per kg. Its coin held steady at Rs50,500 for buying and Rs50,600 for selling of 100 pieces.

On the other hand, gold of 99.9 and 99.5% purity met with resistance at existing higher levels and traded lower by Rs10 each to Rs20,640 and Rs20,520 per kg.

However, sovereign remained stable at Rs16,950 per piece of eight grams.

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]]> http://voteupindia.com/silver-regains-on-global-cues-gold-declines/feed/ 0 Nifty ends near 5750; realty, tech, oil & gas down http://voteupindia.com/nifty-ends-near-5750-realty-tech-oil-gas-down/ http://voteupindia.com/nifty-ends-near-5750-realty-tech-oil-gas-down/#comments Tue, 11 Jan 2011 12:37:25 +0000 Mudit Agrawal http://voteupindia.com/?p=9043
MUMBAI: Indian markets ended volatile session marginally in the red extending losses for sixth straight session. Realty, technology and oil&gas space led the decline while banks, auto and capital goods showed resistance.

Indices opened on a firm note as stocks beaten down in past few sessions bounced back from lower levels. After remaining rangebound for major part of the day, the trade turned volatile in the last hour and benchmarks fell sharply below crucial support levels. However, bulls came in action and managed to lift the benchmarks from day’s lows.

National Stock Exchange’s Nifty ended at 5754.10, down 8.75 points or 0.15 per cent. The broader index touched a high of 5842.60 and low of 5698.20 intraday.

Bombay Stock Exchange’s Sensex closed at 19196.34, down 27.78 points or 0.14 per cent. The 30-share index touched a high of 19431.56 and low of 19003.60 in today’s trade.

“After having corrected around 400 points on the Nifty, the market looks oversold. Technical indicators suggest a bounce back in next 4-5 trading sessions and Nifty may touch 5920-5930 levels. We expect a correction to set in after that and the Nifty may slip to strong support of 5690-5700. Traders should adopt ‘sell on bounce’ strategy in this market,” said Ashish Shroff, technical analyst, Ambit Capital.

BSE Midcap Index was down 0.67 per cent and BSE Smallcap Index moved 0.87 per cent lower.

Amongst the sectoral indices, BSE Realty Index was down 2.74 per cent, BSE IT Index moved 1.60 per cent lower and BSE Oil&gas Index declined 0.85 per cent. BSE Bankex was up 1.24 per cent and BSE Auto Index moved up 0.37 per cent.

Suzlon Energy (-2.33%), TCS (-2.02%), Jaiprakash Associates (-1.90%), Jindal Steel (-1.82%), and Infosys Technologies (-1.56%) were amongst the major Nifty losers.

Hindalco (5.34%), Bajaj Auto (4.66%), Sesa Goa (4.48%), Axis Bank (4.42%) and Reliance Communications (3.36%) were amongst the top gainers.

Market breadth was negative on the BSE with 1484 gainers against 1259 losers.

Meanwhile, the European markets were firmly placed in the green and the Wall Street is expected to open on a similar note. At 5 pm IST , Dow Jones futures was up 0.32 per cent, S&P 500 moved 0.31 per cent higher and Nasdaq gained 0.30 per cent.
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]]> http://voteupindia.com/nifty-ends-near-5750-realty-tech-oil-gas-down/feed/ 0 Onion prices set to rise in Punjab after Pak bans exports http://voteupindia.com/onion-prices-set-to-rise-in-punjab-after-pak-bans-exports/ http://voteupindia.com/onion-prices-set-to-rise-in-punjab-after-pak-bans-exports/#comments Thu, 06 Jan 2011 13:59:14 +0000 Mudit Agrawal http://voteupindia.com/?p=8958
CHANDIGARH: Retail prices of onion are set to move further upward by Rs 5 to 7 per kg in Punjab following the ban imposed by Pakistan on onion exports to India via the Wagah-Attari land route, vegetable traders said today.

“Definitely, there is a going to be pressure on retail rates of onions after the ban imposed on export (of onions) by Pakistan… From tomorrow onward, prices will move up by Rs 5 to 7 a kg,” Amritsar-based vegetable trader Rajdeep Uppal said today.

Onions are currently being sold at Rs 45-50 per kg in markets of Chandigarh and several parts of Punjab, including Ludhiana and Amritsar, traders said.

Retail prices of onions had dipped from a peak of Rs 60-65 per kg to a level of Rs 40-45 per kg almost thirteen days back after onions from the neighbouring country entered the retail market.

Close to 7,000 MT of onions from Pakistan have arrived in India from across the Wagah border since last month. The majority of imported onions from Pakistan are being transported to various parts of Punjab, Chandigarh, Himachal Pradesh and Jammu & Kashmir.

Pakistan has imposed a complete ban on the export of onions to India via the Wagah-Attari land route to counter a sudden rise in prices in its own markets.

“The Pakistan government has banned the supply of onions to India, via the land route,” Customs Department (Amritsar) Deputy Commissioner R K Duggal said today, adding that no truck carrying onions was allowed to cross the border by the Pakistan authorities following the ban.

Vegetable traders have asked the Pakistan government to allow the supply of onions that were contracted before the ban was put in place.

“Almost 1,500 metric tonnes of onions is yet to be supplied to us, but the Pakistan government has not allowed local suppliers to fulfil their trade obligation,” rued Anil Mehra, another Amritsar-based vegetable merchant.

The sudden ban imposed on exports of onions has hit traders of both countries, with Indian importers claiming that Pakistan had not even allowed the supply of orders placed before the ban was announced.

According to customs officials, between 100-150 trucks laden with onions were not allowed to enter Indian territory by Pakistan authorities on Wednesday and asked to return.

To boost the supply of onions, the Centre had even abolished customs duty on imported onions in order to rein in spiralling prices of the vegetable, which finds a place in every Indian’s kitchen.
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]]> http://voteupindia.com/onion-prices-set-to-rise-in-punjab-after-pak-bans-exports/feed/ 0 Promoters to pump in Rs 1,600 crore in Reliance Infrastructure shares http://voteupindia.com/promoters-to-pump-in-rs-1600-crore-in-reliance-infrastructure-shares/ http://voteupindia.com/promoters-to-pump-in-rs-1600-crore-in-reliance-infrastructure-shares/#comments Thu, 06 Jan 2011 13:54:56 +0000 Mudit Agrawal http://voteupindia.com/?p=8957
MUMBAI: Promoters will hike their stake in Anil Ambani group firm Reliance Infrastructure to 48 per cent pursuant to conversion of warrants allotted to them into equity shares for an estimated Rs 1,600 crore.

In a regulatory filing to BSE, the company said that it will tomorrow consider the allotment of shares to promoter group entity AAA Project Ventures Pvt Ltd, following the conversion of warrants issued to them in July 2009 at a price of Rs 928.89 per share.

AAA Project Ventures had allotted at that time a total of 4.29 crore warrants, convertible into equal amount of shares at a price of Rs 928.89, resulting into total price of about Rs 4,000 crore.

Out of this, over half the warrants have been converted into shares and the shares would be allotted for remaining warrants for an estimated Rs 1,600 crore after tomorrow’s meeting of the board committee on allotments, sources said.

Pursuant to the share allotment, the promoters’ holding will increase to 48 per cent, sources added. The promoters held about 43 per cent stake at the end of September 2010.

In the regulatory filing, R-Infra said that its Committee of Directors (Allotment) will meet on January 7 to consider allotment at a price of Rs 928.89 per share to AAA Project Ventures pursuant to warrant conversion by them.

The conversion price is considerably above the current market price of R-Infra shares, which were trading 1.5 per cent up at Rs 869.45 in the afternoon trade.

In June 2009, shareholders of the company had approved issue of warrants to the promoter entity. Thereafter, the company allotted 4.29 crore warrants to AAA Project Ventures Pvt Ltd which were convertible into equivalent number of equity shares at a price of Rs 928.89 per share.

The warrants carried the option to be converted into shares at any time after October 9, 2009, but not after 18 months from the date of allotment of warrants, the company had said at that time.

The infrastructure arm of Anil Ambani group saw its net profit rising to Rs 1,519.39 crore for the year ended March 31, 2010, as compared to Rs 1,353.23 crore for the previous year.

Its total income rose from Rs 13,596.44 crore in the year ended March 31, 2009 to Rs 15,689.67 crore for the year ended March 31, 2010.
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]]> http://voteupindia.com/promoters-to-pump-in-rs-1600-crore-in-reliance-infrastructure-shares/feed/ 0