Lumax Brightens Up

Price on 23/05/97: Rs 94

Price on 16/05/97: Rs 90

The stock spurted up by 4.4 per cent on the announcement that Stanley Electric Company, Japan is increasing its equity stake in the Delhi-based auto ancillary Lumax Industries. Stanley Electric is the subsidiary of Honda Motor company.

This will increase its stake from 11 to 20 per cent and this will be done through a preferential offer for which the approval of the shareholders will be sought.

There is also a likelihood of a merger of Laser Lamps with the company. Also, D K Jain and associates who hold about 34 per cent of the equity will opt for conversion of their warrants which will mean additional allotment of 8 lakh shares.

 

Birla Kennametal

Price on 23/05/97: Rs 33

Price on 16/05/97: Rs 27

The news that the Yashovardhan Birla group and Kennametal, the promoters of Birla Kennametal have raised their aggregate stake to 86 per cent from 80 per cent through a preferential allotment was enough to send the price up by 20 per cent. The preferential offer is at Rs 10 per share at a premium of Rs 15.

The company's equity capital will go up to Rs 2.5 crore. The proceeds from the issue will be used to repay debt of Rs 3.1 crore. It has also undertaken a Rs 6 crore expansion programme at Aurangabad.

The company will bring in products using the latest technology. The initial capacity of CNC machines will be 30,000 pieces.

Zee Telefilms

Price on 23/05/97: Rs 135

Price on 16/05/97: Rs 128

The share price went up by 6 per cent as the market was pleased by the results for the year 1996-97.

It achieved a total income (including the income of Ambience Space Sellers, a subsidiary) of Rs 146.52 crore against Rs 140.26 crore last year. The sales of Zee Telefilms went up from Rs 88.18 crore to Rs 89.26 crore, though the current year sales do not include the sale of Rs 22.52 crore for El and Zee Cinema channels.

These channels have been transferred to a new joint venture company, Programme Asia Trading Company. It has declared a dividend of 45 per cent.

Its consolidated other income went up from Rs 1.83 crore in the last year to Rs 5.84 crore this year. The interest burden almost doubled to Rs 5.95 crore from Rs 2.99 crore last year.