Bhupendra Scrip Shoots Up 300% In 33 Sessions

The Bhupendra Industries scrip, which touched an all-time low of Rs 14 on December 9, 1996 from the all-time high of Rs 180 in early 1995, is once again moving northwards. The stock quoting at Rs 68 has appreciated by over 300 per cent in 33 trading sessions beginning from January 1, 1997. The volume of turnover on both BSE and NSE is quite sizeable with 2.48 lakh shares changing hands.

The company management, in spite of keeping a close watch on the price movements, is not aware of the buyers. Samir V Telivala, vice-president and company secretary, said that a fundamentally sound stock like Bhupendra Industries should have not fallen to a low of Rs 14. The current upswing, according to him, may be due to the investors awareness of the companys fundamentals. Telivala predicts that the scrip will hover between Rs 80 and Rs 120 in the near future.

 

The promoters hold 40 per cent of the equity capital of Rs 9.6 crore. Mutual funds hold between 12 and 15 per cent, while about 32 per cent is with the general public. The promoters are not interested in increasing their holding.

However, the current happenings can be related to the companys plans of issuing equity shares worth Rs 8 crore to its Korean collaborator at a premium. The management refused to divulging any details claiming that it would be premature to do so at this juncture.

The company has planned a diversification programme worth Rs 64.30 crore to manufacture stainless steel wires and ropes. It has entered into a foreign technical collaboration with a Korean company. The plant is expected to be operational in the coming year with an installed capacity of 3,600 tonnes for stainless steel wires and 1,200 tonnes for stainless steel ropes.

The collaborators will not only participate in the equity capital but have also agreed to buyback about 50 per cent of the production continuously for 10 years.