What’s buzzing in these stocks right now

Kingfisher Airlines: The stock has risen sharply in the last 10 sessions or so from around Rs54 to around Rs61 mainly after its announcement to immediately raise up to $250 million through Global Depository Receipts to reduce its debt and and a further Rs5 billion through a domestic offering. Kingfisher's total debt is Rs60 billion as of 31 March 2010. However, there are a lot of rumours flying around this stock. One is that British Airways is likely to take a stake in this company. Another is that about 13 of its aircraft are grounded because of some technical problems. United Breweries (Holdings) recently decided to convert Rs6.5 billion (which it had given as loans to Kingfisher) into preference shares.

GMR Infrastructure: The Bengaluru-based infrastructure company which is into airports, energy and roads has been in the news of late because it deferred plans to raise Rs50 billion (the buzz in the market was it was finding few takers). GMR Infrastructure's debt is about Rs180 billion, about 2x equity. It is looking at exiting its 50% stake in InterGen, a US-based utility, which it bought in 2008 for $1.1 billion. There were reports that Tata Power had made an offer to buy that stake for $1 billion-$1.2 billion. The latest buzz in the stock is that it is planning to monetise its airport land. The GMR Group operates the Hyderabad International Airport and Delhi International Airport and has around 5,700 acres of land at these two airports.

Mcleod Russel: After trending down for several sessions, the stock is up today on a 1:1 bonus buzz. However, it seems unlikely because its board meeting is already over and done with. Moneylife had reported in this section on 9 July 2010 that the stock is likely to rise on shortage in tea production and a subsequent rise in prices. Since then, the stock moved up from Rs210 to as high as Rs265, before coming off to the current market price of Rs236. In its June quarter, its selling price was stable at Rs140/kg, operating profit was 60% lower at Rs142 million, sales quantity was marginally higher at 8.7 million kg but crop was 2.5 million kg lower at 17.7 million kg. It exports for the quarter also dipped sharply to 1 million kg against 1.82 million kg y-o-y. The company said in a communication after its results that weather conditions in Kenya and Sri Lanka have improved and this may lead to a revival in global tea production.— Munira Dongre