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Jindal Drilling buzzes on consolidation, fund-raising news
Jindal Drilling has run up almost 40% in two sessions. The stock has been making new highs and has moved nearly 40% in the last two days. Citigroup has bought nearly 10.5% stake for around Rs 1,250 per share and the stock is trading around Rs 2,100, reports CNBC-TV18.
Jindal Drilling has run up almost 40% in two sessions. The stock has been making new highs and has moved nearly 40% in the last two days. Citigroup has bought nearly 10.5% stake for around Rs 1,250 per share and the stock is trading around Rs 2,100.
The buzz in the market is that there are two things going on inside the company: one is consolidation and the second is fund raising plans. The company wants to consolidate the rigs business under Jindal Drilling. The company has two SPVs, which are Discovery Drilling and Virtue Drilling. They do not hold direct stake in Virtue Drilling, but they have indirect holding of 49% stake by a group company called Jindal Pipes. The buzz is that they will be acquiring this 49% stake from Jindal Pipe and consolidating this holding under the brand Jindal Drilling.
With regards to fund raising, the company intends to raise funds via a Singapore SPV i.e Virtue Drilling and Discovery Drilling. But it is not clear with which subsidiary they will go ahead and raise or whether they will merge both the subsidiaries, consolidate and then raise the funds. But the important thing is that these two plans are on the cards.
CNBC-TV18 spoke to the management, but they were very quiet about talking on any future plans for the company. But this buzz is the reason why the company has been buzzing.
The company has two rigs, which will be delivered in Q4 of FY08. It is also learnt that the company is planning to increase the number of fleets, from two to four, under its operations. These are the things the company is looking at and the market is taking cue from all of these.
