Stock To Watch Today: 04.06.2009

[B. Karthick]

Stocks to Watch: IndageVintners, ITI, DLF, Reliance, Anu's Labs,
Suzlon, GVK Power, SAIL, NALCO

Oil prices gained strength on Thursday after falling over 3 per cent
in previous trade. Crude for July delivery was at $66.30 per barrel
and London Brent crude moved higher to $66.15.

The rupee fell on expectations of capital outflows and dollar’s
strength against other currencies. At 9:15 am, partially convertible
rupee was at 47.22/23 per dollar, from its previous close of
47.07/08.

Japanese alcobev giant Asahi Breweries and entrepreneur-investor Ravi
Jain figure among interested suitors for a major stake buy in the
Chougule family-controlled Indage Vintners (IVL), India’s largest
winemaker. Asahi has been chasing acquisitions in the Indian market
for a while now, and has held discussions with Indage.

The government has kicked off the process of selling loss-making state-
owned companies by putting India’s first public sector unit Indian
Telephone Industries on the block, to be sold in parts. The
communications ministry has invited expressions of interest from
global equipment makers and equity investors to buy out or pick stakes
in three of the six manufacturing plants run by the telecom hardware
firm.

Indian automobile majors Mahindra & Mahindra and Tata Motors figure in
the global list of more than a dozen firms to have been tapped by
bankers representing General Motors for a possible sale of the
beleaguered US carmaker’s small car brand Saturn.

Suzlon the world’s fifth-largest supplier of wind turbines is close to
raising Rs 600 crore from private equity investors. The deal is
expected to be announced this week. Investors will provide funding in
the form of debt which could later be converted into equity.

DLF, India’s largest real estate firm by market capitalisation, is
learnt to have put its commercial property in Andheri, a Mumbai
suburb, on the block. This project was being developed with Akruti
City, and the asking price for the property is said to be at least Rs
500 crore.

GVK Power & Infrastructure on Wednesday said it was planning to raise
around Rs 2,500 crore through a qualified institutional placement with
a green-shoe option to retain upto Rs 500 crore in case of an over-
subscription.

India’s largest steel maker Steel Authority of India (Sail) has
stopped giving discounts on flat steel products to take advantage of
better demand in a move that would make these products marginally more
expensive for buyers.

Anu's Laboratories will issue bonus shares in the ratio of 1:1 i.e one
fully paid equity share for every one share held in the company as on
the record date to be fixed by the company. The company also plans to
raise funds by way of issue of debt, equity or any other security upto
Rs 250 crore.

Kinetic Engineering has received order for supply of specialized
transmission gear assemblies, from a leading European automobile
manufacturer. The project is expected to be implemented over the next
12 to 15 months, and thereafter expected to contribute Rs 30 - 40
crore annually, to the revenues of the company.

NALCO posted a net profit of Rs 83.02 crore for the quarter ended
March as compared to Rs 446.66 crore in the same period a year ago.
Total income decreased from Rs 1296.23 crore to Rs 1233.49 crore.

Trevira GmbH, the German textiles company, which Reliance Industries
bought five years ago, has filed for bankruptcy as the steep slowdown
in the European markets takes its toll on a landmark acquisition of
India’s biggest conglomerate. RIL on Wednesday informed the stock
exchanges that Trevira had applied in a German court to start
insolvency proceedings.

Results diary: Power Finance, GMR Infra, Sundram Fasteners, Rane
Holdings, HOV Services

B.Karthick
Research Analyst.