Shares of FDC, one of the oldest pharmaceutical companies in India ended firm in a weak market on talk that some astute names on Dalal Street have bought the stock. The stock closed at Rs 91.20, up 7% over the previous trading session, supported by nine times the average trading volumes.
The buzz is that the Rar(e)ing Bull has been accumulating the stock over the past few trading sessions. There are speculations that ‘Reward’ brokerage is also backing the stock. Analysts said at nine times FY11 estimated earnings, the stock is one of the most attractively valued in the pharma sector.
Bharat Petroleum flares up on MF bets
Domestic mutual funds have been accumulating shares of Bharat Petroleum (BPCL) of late. According to analysts, investors are betting on changes in government policies and deregulation of oil prices that may trigger another rally in these shares.
BPCL could also benefit from its gas reserves in Africa, analysts said. ‘Kala Paththar Mutual Fund’ is speculated to be buying BPCL shares on every decline. The stock ended 0.8% lower at Rs 753 on Wednesday.
Bankers eye Shipping Corp’s FPO account
The parade to select bankers to manage Shipping Corporation of India’s (SCI) follow-on public offer (FPO) will be held in New Delhi on Thursday. Buzz on the deal street is that unlike Power Grid which saw almost all the big banks put in their bid to manage the issue, some of the big league table players may just give this one a miss.
The SCI board had early this month given the nod for an FPO and the offer, expected to fetch about Rs 1,300 crore, is likely to comprise a 10% stake sale by the government and a 10% fresh equity offer by the company.
Post offer, the government holding in the company will drop to 64% from the current 80.12%. On Wednesday, the SCI scrip closed 0.58% lower at Rs 161.95 on the BSE. The company needs around $1 billion per annum for the next two-three years to fund its acquisition plans.
(Contributed by Harish Rao, Shailesh Menon & Deeptha Rajkumar)