STOCK MARKET NEWS WITH VIEWS FOR 2008

• 3:5 bonus from Reliance Power with an effective Rs269
  Impact: Reliance Power will offer three bonus shares to its investors for every five held in an effort to compensate for the fall of its share price after its high decibel, record-breaking initial public offering last month.The bonus shares will not be offered to the promoters Mr Anil Ambani, Chairman of the company, and Reliance Energy (REL) who hold 45 percent stake each in Reliance Power.This contribution and the bonus offer would see Mr Ambani’s stake in Reliance Power diluted by around 5 percentage points to 40 percent, with him relinquishing around Rs5000 crore. The public shareholding will be 15 percent, up from 10 percent currently. The bonus issue will effectively reduce the Reliance Power’s share price by nearly 40 percent to Rs269 for retail investors (who paid Rs 430 a share) and by 37 per cent to Rs 281 for institutional investors.
  Investment View: For recommended price level for this scrip, subscribe to our Exclusive Market Outlook from the desk of the Managing Director.

   

   

• GSK enters Rs50 crore `specialist nutrition` market in UP
  Impact: GlaxoSmithKline Consumer Healthcare entered the Rs50 crore ‘specialist nutrition’market in Uttar Pradesh with the launch of its protein supplement product ‘Actibase’. Supporting about 10-15 percent of the total Rs500 crore market of the country, Uttar Pradesh seems to be the largest protein supplement consumer market.
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• Shipping Corporation board declares 45% interim Impact: Shipping Corporation of India Ltd (SCI) has informed that the board at its meeting held on February 22 has resolved to pay the shareholders an interim dividend of Rs 4.5 per share i.e. 45% on the equity capital for the year ended on March 31, 2008.
  Investment View: For recommended price level for this scrip, subscribe to our Exclusive Market Outlook from the desk of the Managing Director.

   

   

• Rcom Buys Uganda Company Impact: Rcom has acquired a telecom firm in Uganda and were spend Rs2000 crore over the next 5 years in the African country. It bought Uganda based Anupam Global Soft Ltd. Marking the Indian firm’s foray in the international mobile services market. Rcom through the target firm licenses would offer mobile, fixed line, internet, long distance and other services in Uganda.
  Investment View: For recommended price level for this scrip, subscribe to our Exclusive Market Outlook from the desk of the Managing Director.

   

   

• HDFC Bank, Centurion Bank of Punjab share swap ratio 1:29
  Impact: HDFC Bank has approved the share swap ratio of 1 share (Rs 10 each) for every 29 shares (Re 1 each) held in Centurion Bank of Punjab. The bank’s board will meet on Feb 28 again on the merger of Centurion Bank of Punjab with HDFC Bank. It would also consider a preferential offer to its promoter, Housing Development finance Corporation, to enable HDFC to maintain its shareholding in the bank
  Investment View: For recommended price level for this scrip, subscribe to our Exclusive Market Outlook from the desk of the Managing Director.

   

   

• Globe Talks: Markets Rise: U.S. stocks gained for a second week, led by energy and financial companies, after oil climbed to a record and investors speculated that bond insurers will keep their credit ratings. European stocks climbed for a second week, led by commodities producers and insurers, as rising metal prices and better-than-expected earnings outweighed concern the U.S. may fall into a recession. Asian stocks rose, led by financial companies, on speculation a plan to help U.S. bond insurers keep their credit ratings will limit further losses related to subprime-mortgage defaults.

Disclaimer:

This publication has been prepared solely for information purpose and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, investors are advised to satisfy themselves before making any investments. Kisan Ratilal Choksey Shares & Sec Pvt Ltd., does not bear any responsibility for the authentication of the information contained in the reports and consequently, is not liable for any decisions taken based on the same. Further, KRC Research Reports only provide information updates and analysis. All opinion for buying and selling are available to investors when they are registered clients of KRC Investment Advisory Services. As a matter of practice, KRC refrains from publishing any individual names with its reports. As per SEBI requirements it is stated that,Kisan Ratilal Choksey Shares & Sec Pvt Ltd., and/or individuals thereof may have positions in securities referred herein and may make purchases or sale thereof while this report is in circulation.

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