What’s buzzing in these stocks right now
Wockhardt
The stock was rising on rumours of the company selling some property to pay off debt. Wockhardt has several hospitals spread across Mumbai, Navi Mumbai, Goa, Nagpur, Nashik, Rajkot, and Surat. Recently, Sun Pharma put a spanner in its plan to settle its foreign currency convertible bond (FCCB) creditors, by approaching the high court asking to be heard before any settlement was allowed between Wockhardt and its creditors on FCCB dues. Sun demands the original FCCB terms be honoured. Wockhardt had taken most creditors on board to clear a preferential issue of up to $400 million and fresh issue of FCCBs up to $74 million as part of the settlement on bond dues. Sun says it holds close to 20% of the FCCBs that Wockhardt had issued to raise $110 million.
Suzlon
There were rumours of RIL planning to take over Suzlon. After the Vedanta-Cairn deal, it is wise to mention even absurd-sounding rumours about large-cap companies. In its latest quarter, Suzlon reported a 42% fall in consolidated revenues, while losses deepened to Rs9.12 billion from Rs4.5 billion y-o-y. Its European operations caused most of the pain while operations in India, Brazil and China improved.
Mudra Lifestyle
There is a buzz around a stake sale to a Korean company. This was also flashed by CNBC TV18 quoting 'sources'. Mudra is promoted by Murarilal Agarwal, Ravindra Agarwal and Vishwambharlal Bhoot. It posted a revenue of Rs1.1 billion and profit of Rs25 million in its June quarter (Rs904 million and Rs2 million in June 2009). The stock hit a high of Rs50 in mid-August but has been falling ever since.
Shree Ram Mills
A rumour that was doing the rounds earlier has resurfaced. In June, the buzz was that Shree Ram Urban Infrastructure, the Vikas Kasliwal-run real-estate company, is set to sell a part of its 2.65 million sq ft in Shree Ram Mills in Worli (central Mumbai) for around Rs25 billion. This stock was being touted by many mid-size and small brokers in August.
Venky's India
There is some buzz of a strategic stake sale to a foreign company. Promoters hold 56% stake in the company. The company was founded by BV Rao and Uttaradevi Rao. The stock has risen from Rs250 in February to current levels of Rs715. In its June quarter, the company posted revenues of Rs2 billion and profit of Rs281 million (Rs1.7 billion and Rs111 million in June 2009). It recently set up a poultry-feed manufacturing facility in the Tay Ninh province of Vietnam with a total investment of Rs1.5 billion.
UB Holdings
Strong rumours of bonus/split in the Vijay Mallya-promoted company. The stock has risen from Rs190 in June to the current Rs270 levels.
Tide Water
Rumours of a big bonus issue have resurfaced. Apparently the announcement will be made in the board meeting on 3rd September. Moneylife had reported this rumour on 9th August. (See: http://www.moneylife.in/article/8/7976.html).— Munira Dongre