25% Stocks Gave Rs 11,467 Crore Returns

Twenty five per cent of the actively traded scrips on the Bombay Stock Exchange created wealth worth Rs 11,467 crore for shareholders during the first half the current financial year. The market capitalisation of the 480 gainers rose 12.7 per cent -- from Rs 90,244 crore on March 31, 2001, to Rs 1,01,711 crore on September 28, 2001.

However, the front-line stocks were in a repulsive mode, destroying shareholder wealth by a whopping Rs 1,20,000 crore.

Shareholders were in no-win situation as the wealth destroyers overwhelmed the wealth creators 10:1. This means, wealth creators earned a rupee while the destroyers lost Rs 10 during the last six months.

Most of the forty top gainers, which appreciated by between 100 and 962 per cent, had one factor in common -- 35 of these were traded at around Rs 1-5 six months ago. Eleven of these sub-Rs 5 stocks are now traded over Rs 10. In all, 245 stocks were traded below Rs 10 six months back. The list has dwindled to 201 now.

VGR Construction topped the list of gainers in the six months under review, with a whopping 962 per cent gain. The market value of stock rose to Rs 21.25 from Rs 2 six months back. Financially, the company has not down well with quarterly revenue of Rs 4 lakh.

Amrit Banaspati shot up 749 per cent, from Rs 3.50 to Rs 29.70, on account of a Board for Industrial and Financial Reconstruction package. Super Syncotex rallied 706 per cent, its price zooming from Rs 1.55 to Rs 12.50.

Asahi Construction and Housing soared 550 per cent, from Rs 3.30 to Rs 21.45, and Media Matrix (formerly Giltfin Finance) rose 379 per cent, from Rs 21.65 to Rs 103.35.

Corporate news, particularly buybacks from the parent company, helped boost shareholder value.

Speciality chemicals major Foseco's (India) scrip soared 190 per cent as BP Amoco offered to pick 20 per cent equity in the company at a price of Rs 221.90 per share. The stock surged to Rs 165.20 from Rs 57.05 as the open offer is awaited.

ITW Signode surged 94 per cent on account of an open offer at Rs 80 per share. Rayban Sun Optic gained 82 per cent following the Securities and Exchange Board of India's enquiry as to why the company did not make an open offer. Madura Coats rose 80 per cent on account of the promoters' offer to buy 25 per cent equity at Rs 27 a share. Welspun India surged 77 per cent following an open market acquisition of shares. Wartsila also rose 65 per cent on account of an open offer, while CMC rose 30 per cent on news of a divestment move.

The stocks with strong fundamentals also gained ground during the last six months. Dr Reddy's Laboratories rose 43.1 per cent on strong growth prospects. Cipla and Ranbaxy gained over 12.5 per cent each on investment buying.