STOCK
UPDATE
Infosys
Technologies Cluster:
Evergreen Recommendation: Buy Price target:
Rs2,430 Current market price: Rs2,252 |
ADS issue priced at $53.5 The
sponsored American depository shares (ADSs) issue by
Infosys Technologies have been priced at $53.5 each
excluding the underwriting discounts and commissions.
The aggregate size of the ADS issue works out to $1.6
billion, taking the total market capitalisation of
Infosys' overseas float to over $5.5 billion.
Consequently, Infosys is likely to get included in the
Nasdaq-100 index in the forthcoming review of the index
constituents in December.
Sanghvi
Movers Cluster: Ugly
Duckling Recommendation: Buy Price target:
Rs1,150 Current market price: Rs763
Oozing confidence At its
board meeting held on November 17, 2006 Sanghvi Movers
decided to allot up to 880,000 equity shares of face
value Rs10 each to Goldpeak. (Goldpeak is a wholly-owned
subsidiary of Aria Investment Partners III, LP). The
proposed allotment would be carried out as per the
pricing formula recommended by the Securities and
Exchange Board of India or at Rs825 per equity share,
whichever is higher.
By way of this allotment the company
proposes to raise Rs72.6 crore, which will go towards
funding its enhanced capital expenditure (capex)
requirements. We had earlier estimated the company's
capex needs at Rs150 crore this year; the estimate has
now been revised upwards to Rs200 crore, as per
management's guidance.
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