Financial Daily from THE HINDU group of publications
Friday, Mar 21, 2003
Financial Daily from THE HINDU group of publications Friday, Mar 21, 2003 |
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Markets
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Stock Markets HFCL slumps 30 pc on talk of FCCB shares sale Virendra Verma
MUMBAI, March 20 HIMACHAL Futuristic Communications Ltd (HFCL) fell over 30 per cent in the last five trading sessions on market talks that the foreign currency convertible bonds (FCCBs) that were recently converted into equity shares are being sold in the market. The stock has also suffered on talks that the shares are being sold by the GDR-holders in the local market. The FCCB-holders had converted the bonds into shares to the tune of 67.85 lakh shares at Rs 26 per share between February 27 and March 10. Just after the conversion of these bonds, the stock price fell from Rs 24.5 on March 12 to today's closing price of R s 16.75 on the BSE. On the NSE, the stock fell from Rs 24.90 (March 12) to today's close of Rs 16.55. Along with the fall in the stock price, trading volumes have also gone up sharply on both the BSE and the NSE. Volumes on the BSE increased from 2.89 lakh shares on March 12 to 81.75 lakh shares today. Similarly on NSE, volumes increased from 58.2 lakh shares to 1.62 crore shares. Of the traded shares, 34.83 per cent was up for delivery on the NSE and 28.78 per cent on the BSE. Over the last few months, Khandesh Builders has been acquiring the shares of HFCL from the market and its holding has crossed over five per cent. In a notice to the stock exchanges, the company said that the shareholding of Khandesh Builders is 69,10,811 shares amounting to 5.19 per cent of the equity. A similar fall in the stock price was also seen early this year when the GDR holders were selling the shares in the domestic market. During the October-December 2002 quarter, GDR holders sold 4.38 crore shares in the local market. Since the beginning of this year, the stock price of the company is already down 60 per cent. Stockbrokers said the share price has fallen as the company has been continually increasing its equity capital despite not-so-good profitability in the last year.
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