Hmt

Premier Instruments & Control

Price on 11/6/99 : Rs 119

Price on 4/6/99 : Rs 92.95

The share price of Premier Instruments & Controls gained 28 per cent last week following the decision of its collaborator, Denso Corporation, Japan, to pump in fresh funds. Denso plans to subscribe to an issue of optically convertible loan amounting to 400 million yen (around Rs 14 crore) with an option to convert the loan into equity at a price not less than Rs 200 per share. Analysts feel if the inflows are converted into equity it would have a positive effect. Further these inflows will augment the cash flows and the company would be better equipped to meet the higher demand as the auto ancillary industry picks up.

Its financial performance has also been satisfactory despite the slowdown in the auto ancillary industry. In 1998-99, the company posted a net profit of Rs 11.12 crore on net sales of Rs 138.4 crore. Sales for the year groew 5.78 per cent. In the first half of 1998-99, net sales was Rs 68 crore with a net profit of Rs 3.68 crore.

MRPL

Price on 11/6/99 : Rs 18.75

Price on 4/6/99 : Rs 14.40

The possibility of an equity sell-off by one of its promoters, Aditya Birla Group to US major Exxon Corporation resulted in the Mangalore Refineries and Petrochemical (MRPL) scrip rising 28 per cent in the week. The average daily volumes of its shares is 10,000 to 20,000 share but following this news, total volumes onb BSE and NSE together spurted to 4.5 lakh shars on June 7, 1999.

MRPL has been promoted by AV Biral Group along with Hindsutan Petrochemical Corporation (HPCL). According to reports, the deal will be signed at a price of Rs 30 per share for the AV Birla Group's equity. MRPL is currently expanding its capacity from three million tonnes to nine million tonnes per annum and the new promoter will infuse funds for the expansion. The total expansion will cost the com