Market Buzz

Buzz gets louder on RPL project completion

 

Market talk of Reliance Petroleum's Jamnagar refinery going on stream much before its scheduled time is getting stronger by the day. Grapevine has it that Larsen & Toubro (L&T), India's largest engineering company, has completed the construction and delivery of the fluidized catalytic cracking (FCC) reactor for the 27 million tonne per annum Jamnagar refinery.

 

L&T has com-pleted the job much before the scheduled time, prompting analysts to say that the refinery may also be up and working by the middle of 2007, around three months before schedule. FCC reactor is considered to be the core part of refineries.

 

Investors stock up on Grindwell Norton shares

 

Traders are accumulating shares of Grindwell Norton in anticipation of a significant improvement in its bottomline over the next few quarters. The company has raised the price of all its products by 12% in the past couple of months, and analysts expect a major part of this increase to feed into the bottomline.

 

Further, the company is setting up a new plant in Uttaranchal, which is expected to be operational in a year's time, giving the company significant tax benefits. The buzz in the market is that the company may announce a spe-cial dividend of Rs 5 from the proceeds it received recently by selling its entire shareholding in its JV with Lincoln Hellos India. Company officials declined to comment on this issue. The stock closed at Rs 146.50, up 1% over the previous close.

 

Carol Info gains on Wockhardt IPO buzz

 

Carol Info Services has risen 21% over the past one month, which dealers attribute to its holding in Wockhardt Hospitals (WHL). The company holds 67.5 lakh shares of WHL, which is coming out with an initial public offer shortly. The issue is likely to be priced at Rs 400 per share, according to broking circles.

 

Further, the company owns properties in Mumbai, which are valued around Rs 300 crore. In 2006-07, the company earned Rs 11 crore as rent from these properties. Dealers expect this figure to rise as the lease is coming up for renewal shortly. The stock price closed at Rs 80, down about 2% over its previous close.