Ramco Industries - Value Buy - update

Ramco Industries has fixed 15 September 2009 as the record date for the purpose of both the sub-division of the face value of each equity share of Rs 10 into 10 equity shares of Re 1 each and also for the issue of bonus shares in the ratio of 1:1.

·         The stock hit a high of Rs 1256.50 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 1249 so far during the day. The stock hit a 52- week low of Rs 326 on 13 March 2009.

·         The small-cap stock had outperformed the market over the past one month till 3 September 2009, rising 14.98% as compared to the Sensex’s 3.30% fall. It had also outperformed the market in the past one quarter, gaining 45.94% as compared to the Sensex’s return of 3.55%.

·         The company’s equity capital is Rs 4.33 crore. Face value per share is Rs 10.

·         The board of directors of Ramco Industries fixed 15 September 2009 as the record date for a 10-for-1 stock split and a liberal 1:1 bonus issue. This is the second bonus from the company. Earlier, the company had issued a liberal 1:1 bonus on December 1994.

·         Ramco Industries’ net profit rose 4.7% to Rs 15.60 crore on 21.4% rise in net sales to Rs 150.97 crore in Q1 June 2009 over Q1 June 2008.

·         The company manufactures fiber cement sheets, pressure pipes and accessories and allied building materials and cotton yarn. The group operates in four segments namely building products, textile, windmill and other.

·         Promoters have pledged more than 3.22 lakh shares representing 7.44% of the equity capital of the company (as on 30 June 2009). Total promoter shareholding in the company is 50.54% (as on 30 June 2009).

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NHPC IPO Allotment details

NHPC, largest hydro-power generation company and government owned entity, has fixed the issue price of Rs 36, at higher end of the price band. The company garnered Rs 6,038.55 crore from the issue; out of which, the government received Rs 2,012.85 crore and that will be used for infrastructure projects. The rest of the amount i.e. Rs 4,025.7 crore, the company will use for its power projects. Shares of NHPC are expected to be listed by the first week of September, merchant bankers to the issue said. Basis of Allotment (Under Subscription under Employee quota have been allocated to QIB/HNI/Retail in 60:10:30 ratio) It had launched its initial public offering (IPO) of 1,67,73,74,015 equity shares of Rs 10 each with a price band of Rs 30-36 per equity share. It opened during August 7 and August 12, 2009. The issue received overwhelming response from all categories of investors and was subscribed 23.74 times.  Qualified institutional investors (QIBs) were the major supportive investors with their portion being subscribed 29.16 times. Non-institutional and retail investors' portion subscribed 26.7 times and 3.87 times, respectively. The issue constituted 13.64% of the post-issue capital of NHPC. After the issue, the shareholding of the President of India shall be approximately 86.36% of the post-issue paid-up equity share capital of the company. The proceeds of the fresh issue (after deducting the proportionate underwriting and issue management fees, selling commissions and other expenses associated with the fresh issue) will be used to part finance the construction and development costs of certain of projects, namely, Subansiri Lower, Uri – II, Chamera - III, Parbati – III, Nimoo Bazgo, Chutak, and Teesta Low Dam - IV