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Sir,
Add more if it go below Rs.38.50/-. Book value is more than Rs.90/- & promoters have increased their shareholding via preferential allotment. Future is very bright.
High equity dilusion rate is only cause of concern. I see target of Rs.125/- after 3 years.
Take the best decision...
I have bought 100 shares @58.15 per share. Now it is Rs46.60 per share. What is the future of this stock....
Minority shareholders don investor activism cap.....Minority shareholders protested Spanco Management to allot 1 crores preferential shares at less than Rs.50/- per shares
Posted by :
My Multibaggers
Minority shareholders don investor activism cap
19 Jun 2009, 0311 hrs IST, Apurv Gupta & Vijay Gurav, ET Bureau
MUMBAI: Investor activism has gained strength, with minority shareholders of a growing number of companies raising their voice against moves that,
they feel, are detrimental to their interest. Shree Ram Urban Infrastructure and Spanco are among companies that have recently witnessed a taste of the investor activism. Similarly, in case of Gujarat Heavy Chemicals (GHCL), retail investors have formed a forum to protect their interests.
“There was a sudden scrambling for calling EGMs to seek an approval for the warrants issue, ahead of general elections. With the sharp rally in shares after the elections, share prices are now quoting at a substantial premium to the warrant price, thus offering promoters a price advantage,” said an analyst at a leading Mumbai-based institutional brokerage.
More than 100 individual shareholders of small-cap company Shree Ram Urban Infrastructure (formerly Shree Ram Mills) recently filed a petition with the Company Law Board (CLB), challenging the company’s decision to issue 25 million convertible warrants to promoters and their associates at a low price. The shareholders felt the move was intended to help promoters raise their holdings at a low price, rather than infuse funds into the company.
Acting on the petition, the CLB restrained the company’s board from issuing warrants on preferential basis to the promoters, their friends, relatives and associates. In another example, some retail shareholders of Sanjay Dalmia-promoted GHCL came together to form a forum to protect their interest. The forum alleged that shareholders have not been offered an exit option at a price at which promoters sold their stakes in June last year.
“It would not be appropriate to comment on allegations as the matter is sub-judice,” said GHCL company secretary Bhuwneshwar Mishra. In April, Sebi barred the promoters and the top management from dealing in the stock market, after the regulator, in its preliminary investigation, found discrepancies between promoter holdings as per registrar records, and disclosures made to stock exchanges.
Some weeks ago, shareholders of Spanco protested against the company’s move to allot one crore shares to its promoters and other institutional investors. At the EGM, the shareholders demanded the allotment at Rs 50 per share, instead of Rs 35 per share as proposed by the company. The company finally allotted shares on a preferential basis at Rs 40 per share. “Sebi should only allow companies to come out with rights issues and nothing else.
Promoters try to time the market vis-a-vis price in many cases. All other instruments such as FCCBs, preferential allotments or QIPs should not be allowed as these favour promoters or large investors rather than serving the interest of minority shareholders,” says Aspi Bhesania who along with other shareholders successfully asked the promoters of Spanco to raise the conversion price. ...
Completing its consolidation in a day or two
Posted by : prjayachandran
The share price should complete its consolidation in a day or two after which a major upmove could occur.
This could coincide with confirmation of award of Rs.3750 crores worth BSNL order.
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Hallo RevengeOfTheGod Sir,
Few days back, BSNL withdrawn round of tenders submission for WiFi contracts. Just because they never got suitable bidders for doing the work. In fact many biding companies were just paper companies with no real operations. Further media reported that `Bribes` are considered by BSNL officials while awarding orders through tender system.
Apart from this, could you please suggest names of multibagger scrips which you have spotted on the basis of fundamental analysis, for long term investment (10 years+)?
Talking on Spanco, equity dilution rate is very high. Other than this, Spanco is going to be Multibagger of next decade.
Don`t forget to mention multibaggers from your sack....
So what ?
I was amazed to see a stock Rs. 8/= (odd) to
1800/= odd w/i less than a span of 6 months ?
But where it is now ?
U don`t find it Quotation ?
Recent incident :
Temptation Food,
Languishing at Rs. 3/= (odd) touched Rs.
350/= (odd), Ketan Parikh made the
Scapegoat ? Why not the Funds that
Invested into it ?
...
Spanco was one of the initial front runners of the great indian mid cap bull run. My initial purchase was at Rs sixty and i have seen it move all the way to Rs 300+
Coming to the present times, Spanco had hit rock bottom at Rs15. With the recent win of the BSNL order, i feel that the good times may be back at this counter. Spanco has never had a dearth of government orders. However things may be different this time around.
Promoters are taking a big stake at Rs40 and this is a very positive sign.
After a sharp upmove from Rs15 . Spanco is consolidating at these levels. Spanco has been confirmed as the lower bidder for the Rs7000+ BSNL order and now we are awaiting the official awarding of the order .
This is definitely a buy at these levels. Dont expect the company to start declaring turn around results from the next quarter. From my experience, the maximum profit is to be made in investing in companies that were doing great once upon a time and then fell upon hard times and then start doing well again.
Case in point - SEAMEC shipping. Look at the performance and the price history of the stock and you will understand what i mean.
Buy and hold for 2 years to get maximum benefits. This can turn out to be a 3-5 bagger.
From E.T
Spanco Telesystems was in the news for submitting the lowest bid for BSNL’s Rs 7,500-crore telecom infrastructure contract. The contract consists of providing telecom towers , power plants, generator sets and other infrastructure.
In the case of BSNL contracts, the lowest bidder typically gets 50% of the total contract work, while the remaining half is equally divided among the second and third lowest bidders. According to a source, Spanco is currently in the negotiation phase with BSNL and the final order size is likely to be Rs 3,750 crore. It is a build, own, operate, and transfer (BOOT) contract spanning over seven years.
BSNL has also floated a tender for IT related work with an expected size of Rs 6,000 crore. Spanco has tied up with applications developer Amdocs and IBM and has jointly bid for the tender . BSNL is likely to announce the lowest bidder for this project in a few weeks.
Spanco has grossed Rs 622 crore in revenue in the last four quarters. BSNL’s contract would help the topline increase at a rapid pace since the company expects to earn over Rs 1,000 crore in revenue in the first year of the contract with an operating margin of 14-15 %. This may provide some stability to its current margin, which has been fluctuating between 6% and 17%. Spanco has been aggressively looking for opportunities in the telecom and BPO space. However, it has yet to achieve financial stability. Its cash flow from operations is negative, indicating that the company is still in the financing mode and will take some more time to generate a cash flow from operations. It also has to improve its receivables collection. The debtor days or days for which sales are outstanding has increased to 169 days in FY08 from 122 days in the previous year.
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Small Caps under Pressure...Order receiving from BSNL will be trigger
Posted by : tara23thanks for the information and views...
Small Caps under Pressure...Order receiving from BSNL will be trigger
Posted by : My Multibaggers
Spanco is already short listed...so do not worry about order cancellation. And this is not 1st order for Spanco from BSNL. Just formality is left. After that Spaco will cross Rs.100/-.
Even if order get cancelled (which is hardly possible) then too Spanco is chip stock @ sub Rs.50/- level. Book value is Rs.92.50/- PLUS...
Small Caps under Pressure...Order receiving from BSNL will be trigger
Posted by : tara23in case of no order? what will the position of this stock.......
Small Caps under Pressure...Order receiving from BSNL will be trigger
Posted by : My Multibaggers
Samll Caps may remain under pressure till budget.
Order receiving from BSNL for Rs.3750 crores will be trigger for Spanco which in turn send Spanco to Rs.100/- PLUS levels...
BSE Announcements on Spanco
Posted by : MMB MessengerSpanco Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 06, 2009, in pursuance to the authority given by the shareholders in the Extra Ordinary General Meeting (EOGM) held on May 23, 2009, have issued and allotted 74,15,000 Equity Shares of Rs 10/- (Rupees Ten) per equity share, for cash, at a premium of Rs 30/- per equity share on preferential basis in terms of SEBI (DIP) Guidelines to the allottees....
Needs a higher closing tomorrow
Posted by : prjayachandranThe failure of the share price to go past Rs.59.10 indicates that the price would consolidate at sub-Rs.60 levels before making an upmove....
some booster like bsnl`s order will stabilise the stock above 70... for sure in between....
some booster like bsnl`s order will stabilise the stock above 70... for sure in between....
