dkishore
18-01-2008, 07:25 AM
Likely buyback lights up Bajaj Electricals
Analysts are unsure about the success of Bajaj Electricals’ upcoming share buyback issue by promoters at the existing offer price of Rs 389 per share.
They feel investors are unlikely to tender shares in the buyback offer, going by the way the stock has climbed after the buyback announcement on December 4. Bajaj Electricals intends to buyback 12.10 lakh shares from shareholders. The stock has risen roughly 41% since the announcement to Rs 610 on Thursday, after rising to a record Rs 704 on December 31.
Analysts said recent instances, where companies have upgraded their buyback offer price, are encouraging investors to demand higher prices.
Brokers optimistic, but jury is out on FII strategy
The steep fall in share prices over the past one week notwithstanding, most brokers are still optimistic that the market will bounce back shortly. But the big question is where will the much-needed purchases come from.
FIIs have been dumping stocks ruthlessly, and if market grapevine is to be believed, many of them are said to be selling shares borrowed from other large investors in the past few days. Of course, stock lending and borrowing is yet to be formally announced, but foreign funds have long learnt to get around those restrictions.
As far as local brokers are concerned, most have already exhausted their exchange-specified limits on the trading terminals. Bulls do not appear to be lacking in valour, but they surely seem to be short of headroom on their terminals.
Server load factor has market worried
The hype surrounding the subscription of R-Power and to a certain extent Future Capital spawned a new set of rumours. Even as the stock exchanges extended the time for accepting the bids of both Future (subscription closed on Wednesday) and R-Power to 11 pm, there were talks of server problems at the brokerages which in turn started the rumour mills buzzing as to whether the exchanges would be able to handle the ‘load’ on listing day of both R-Power and Future.
The market savvy claimed that the NSE was upgrading its systems to meet with the debut day frenzy. NSE said that its trading and clearing systems are always updated ahead of time, keeping in mind market conditions.
BSE on its part said the recent tie up with OMX for its new trading platform, is part of its strategy to enhance the volume capacity in the cash market and to offer a more robust derivatives platform to the market.
Analysts are unsure about the success of Bajaj Electricals’ upcoming share buyback issue by promoters at the existing offer price of Rs 389 per share.
They feel investors are unlikely to tender shares in the buyback offer, going by the way the stock has climbed after the buyback announcement on December 4. Bajaj Electricals intends to buyback 12.10 lakh shares from shareholders. The stock has risen roughly 41% since the announcement to Rs 610 on Thursday, after rising to a record Rs 704 on December 31.
Analysts said recent instances, where companies have upgraded their buyback offer price, are encouraging investors to demand higher prices.
Brokers optimistic, but jury is out on FII strategy
The steep fall in share prices over the past one week notwithstanding, most brokers are still optimistic that the market will bounce back shortly. But the big question is where will the much-needed purchases come from.
FIIs have been dumping stocks ruthlessly, and if market grapevine is to be believed, many of them are said to be selling shares borrowed from other large investors in the past few days. Of course, stock lending and borrowing is yet to be formally announced, but foreign funds have long learnt to get around those restrictions.
As far as local brokers are concerned, most have already exhausted their exchange-specified limits on the trading terminals. Bulls do not appear to be lacking in valour, but they surely seem to be short of headroom on their terminals.
Server load factor has market worried
The hype surrounding the subscription of R-Power and to a certain extent Future Capital spawned a new set of rumours. Even as the stock exchanges extended the time for accepting the bids of both Future (subscription closed on Wednesday) and R-Power to 11 pm, there were talks of server problems at the brokerages which in turn started the rumour mills buzzing as to whether the exchanges would be able to handle the ‘load’ on listing day of both R-Power and Future.
The market savvy claimed that the NSE was upgrading its systems to meet with the debut day frenzy. NSE said that its trading and clearing systems are always updated ahead of time, keeping in mind market conditions.
BSE on its part said the recent tie up with OMX for its new trading platform, is part of its strategy to enhance the volume capacity in the cash market and to offer a more robust derivatives platform to the market.