Stocks

RIL avoids debt route for Lyondell acquisition.

Posted by : pyaretaj

MUMBAI: Reliance Industries plans to fund its acquisition of the world’s third-largest petrochem company LyondellBasell Industries (LBI) by selling treasury stock and dipping into its cash reserves without taking any additional debt on its balance sheet, rating agency Crisil said on Tuesday while re-affirming its ‘stable’ rating on RIL’s debt. Crisil said that Mukesh Ambani-led firm had told it that, post-acquisition, LBI would have a conservative capital structure, with gross debt-to-equity ratio not exceeding 0.75 times. No additional support would be required from RIL, Crisil said.

The rating agency said its description of RIL’s plans to finance the acquisition of LBI and the foreign company’s post-acquisition debt structure was based on its discussions with the management of India’s largest private sector company. When contacted, RIL’s external spokesperson said the company had nothing more to add to its Saturday statement which said that it had submitted a non-binding all-cash preliminary offer to buy a controlling stake in LBI. RIL is sitting on a cash reserve of $4 billion and treasury stock worth $8 billion.

Although RIL did not disclose the possible size of the transaction, it is estimated to be around $12 billion in enterprise value. Enterprise value is calculated as equity plus debt, minority interest and preferred shares minus total cash and cash equivalents.

Crisil said RIL’s cash levels would be replenished soon as the accruals remain strong. “The rating outlook will be revised to negative if RIL extends any financial support to LBI, or if RIL’s debt levels increase either because of a change in the value of the acquisition or any change in the financing plan.”

The acquisition, if consummated, would enhance RIL’s topline to $80 billion, bigger than the industry leaders like Dow Chemicals. Crisil said the successful acquisition would make RIL one of the largest integrated chemical companies with a well-balanced portfolio in petrochemicals, refining and upstream exploration and production.

multibaggerstockadvisor(dot)blogspot(dot)com

Posted by : timnox01

Could you please be more specific as your message does not make sense to a lay person like me.

Bonus issue

Posted by : atul1404

Will the price of stock come down after issue of bonus. If yes then what will be the time in days difference between individual getting bonus issue i.e. his stock doubling and cost falling

Long term investment portfolios : Warren Buffet ways.

Posted by : RECKLINE

it can go to Rs.153-158 with stop loss Rs.131 please stay long you will get profit from in short term or by expry of this month...

ANOTHER DOWN C I R C U I T. .

Posted by : tara23

very rightly said, this was the first statement i made, write off ur investment in such companies.. if any profits,,come enjoy them.

BUy/Sell/Hold

Posted by : sandeepcorp

I bought NOCIL @ 46 in Jan 2008...Should I sell/Buy/Hold or Change over...I can wait for one more year

some good observations

Posted by : gupta5223

i suggest you look at allahabad bank whose fundamentals are much superior to dena. albk is likely to post an eps of 27 and they have very little net npa of 0.35% against dena of over 1.5%. at current price of 140 albk pe is 5.2.

Be a millionare

Posted by : gajabhau

at least 500 plus if port s are working full house in india,if it reaches before that sell 100 n enter some other stk...

Bonus issue

Posted by : atul1404

Will the price of stock come down after issue of bonus. If yes then what will be the time in days difference between individual getting bonus issue i.e. his stock doubling and cost falling

ROCKET STOCK.... COMPACT DISC INDIA Ltd. 67/-; TARGET 85/- & 155/-

Posted by : India_bulls

ROCKET STOCK.... COMPACT DISC INDIA Ltd. 67/-; TARGET 85/- & 155/-

COMPACT DISC India Ltd Trading in BSE at 67/-in B Group. Target 85/- for short term & 155/- for Medium Term. Safe Investment at 67/-.

COMPACT DISC INDIA Ltd., Trading in BSE (Code: 526141) at 67 /- in B Group. This is 10/- FaceValue . Daily accumulating company circle people. And Daily grabbing with Mumbai BIG BIG Bulls also because of Now stock is available at very very cheep price at 65/- Annual EPS 41/- for 2008-2009, with PE 1.5 only. And Company Estimated EPS for 2009-10 is 67/-, As per this EPS PE only 1/-Narmally in worst condition also PE will at 5 for Animation Industry. If we take 5 PE It will go Rs.350/- +++.

Board Meeting on 30th November for 20% dividend declaring.

Compact Disc India Ltd has informed that Seengal Capital Advisors Pvt. Ltd an investment arm of the promoters of CDI and iMedia Ventures Ltd. have offered to buy upto 40% equity of Compact Disc India Ltd by open offer. So Offer may be Rs.90/- or more.

Promoters Increasing their holding from 16% to 20% recetly.

Book Value 75/-; EPS 41/- for 2008-09 and Estimating EPS for this year 2009-10 is 67/-.
20% Dividend paying company,

Compact Disc India Ltd has informed that the Company has signed MOU with BBC Films to co-produce film,

Anyone Got any Idea

Posted by : abhgup

Dear wise boarders,
I have 1000 shares of Gujarat gas and I have been planning to sell them.
Today the counter gas gone up by 17%. Any one has any idea what is happening here.
Is is gonna go up or slide down.
Shoule I sell now and reap profits or wait.
This is such a good company, but alas not many boarders tracking.
Please enlighten.
Regards. Major

Heading

Posted by : deepakmirji

what is the ratio of rpl to rel?