Hetero Drugs to tap capital market
Hyderabad: Hyderabad-based pharmaceutical company Hetero Drugs, a leader in anti-retrovirals, is planning to tap the capital market next fiscal, according to its chairman and managing director, B Parthasarathy Reddy.

The company is in the process of expanding its manufacturing capabilities keeping in view the needs of export markets. The company proposes to set up a Rs 250-crore modern facility at Visakhapatnam.

The company plans to spend Rs150 crore for bulk drugs manufacturing capabilities and Rs100 crore on finished dosages unit. Both the facilities would take off in the next couple of years, Dr Reddy said.

Its recent success in emerging as the first Indian pharma company to obtain sub-licence from Roche to manufacture bird flu drug (Tamiflu), has led Hetero Drugs to chalk out a two-pronged growth strategy. The company proposes to focus on around 50 globally proven therapeutic drugs whose patents have expired. The second strategy is to screen at least 100 products in the next few years and aggressively file drug master files in the regulated markets. Hetero currently has a product portfolio of 40 drugs.
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Reliance Communications Ventures to list on March 6
Mumbai: Reliance Communications Ventures (RCoVL) will begin trading on the stock exchanges on March 6, according to a release from the Reliance ADA group. RCoVL has also sought shareholders' approval to increase the FII limit to 74 per cent of equity share capital.

RCoVL, comprises four businesses of Reliance Infocomm, Flag Telecom, Reliance Telecom and Reliance Communications Infrastructure, will see its pricing decided by the strength of Reliance Infocomm whose shares are said to be ruling in the grey markets in the Rs290-320 range.

The market buzz is that Reliance ADA group will come out with an announcement in the next few days, clarifying the doubts of investors, before the listing of RCoVL takes place.
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Stock Exchange trading time changed
Mumbai: The stock exchanges have altered trading time from March 6 to March 17 because of sun outage. The National Stock Exchange (NSE) has announced that some members would lose connectivity from 11:45 a.m. to 12:25 p.m. Trading would be suspended during this time.

NSE has scheduled trade modification end time to 5 p.m., said an NSE circular. Market closing time is at 5:00 p.m. at NSE and 4:45 p.m. at BSE during this period.
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Singapore FII acquires 8.71 per cent stake in Herbertsons
Mumbai: Matherson Advisory Singapore, a registered FII, has bought 8.29 lakh shares of Herbertsons from McDowell & Co and Phipson Distillery at Rs263.35 per share through a block deal. This works out to a stake 8.71 per cent in the company. The total cost of acquisition works out to be Rs21.83 crore.

The deal brokered by Ambit Capital was also the first block deal for the broking firm, a company release stated.
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Sunil Hitech debuts at 56 per cent premium
Mumbai: Nagpur-based engineering company, Sunil Hitech, has listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) at a premium of over 56 per cent.

While the stock opened at Rs125 and closed at Rs156.20 on the BSE, on the NSE, it opened at Rs110 and ended at Rs157.20, with a total of 27.7 million shares having changed hands.

The company's IPO opened on January 30, 2006 and had offered 34.75 million shares at Rs100 each.

The director of the company Sunil Gutte said hefty premium on the day of listing meant the investors have taken note of the company's healthy performance and growing order book position.

Gutte revealed that the company's order book stood at Rs303 crore in January 2006 and is likely to go up to over Rs700 crore during the current calendar year. The company has made Rs350 crore bidding for projects with various domestic as well as international companies.

Sunil Hitech has tied up with a Korean company for the construction of a 500-mw power plant of Reliance Energy. It has also quoted for two 250-mw power plants to be set up by Reliance Energy. Besides, the company has bid for structural and civil work with materials for a 300-mw power plant to be set up in Chhattisgarh.

Given its track record of timely execution, a substantial rise in its revenues for FY06 and FY07 can be expected. The company hopes it to be in the range of Rs130-135 crore for FY06, and it has already achieved Rs107 crore in the first 11 months. It also expects to achieve a net profit of around 4 per cent of its topline.
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Sunshield Chemicals plans rights issue
Mumbai: The Rs30 crore Sunshield Chemicals, a leading manufacturer of antioxidants and surfactants, is planning a rights issue. The issue proceeds will be used to fund capacity expansion at the company's plant at Rasal in Raigad district of Maharashtra.

The company refused to divulge the ratio of the issue and the outlay for the expansion. The company is planning to set up a continuous distillation plant to produce alkyl phenols that contain cyanuric acid — a primary raw material used for manufacturing speciality chemicals — which it imports from China.

With backward integration and increased working capital, it now plans to make this chemical locally, earlier imported, and cut input costs substantially.

The company recently bagged a five-year contract from the German chemical giant Altana Chemie AG to supply electrical enamel insulation material. The company expects an additional business of Rs100 crore from the tie-up. The contract involves manufacturing of electrical enamels used for coating copper cables in power transmission.

Sunshield is also working with Altana to develop other products in the same category required for coating mobile and computer circuits. Besides, it manufactures speciality organic chemicals.

The company's gross sales increased to Rs752.9 crore for the quarter ended December 2005 from Rs534.1 crore recorded in the previous corresponding quarter. It posted a net profit of Rs28.7 crore for the same quarter vis-a-vis a loss of Rs5.4 crore.

In 1993 Sunshield Chemicals had acquired the entire manufacturing facilities of Dimple Chemicals & Services and, in September 1994, completed merger of Alsuan Chemical Corporation and Kamal Chemicals Industries.

The Sunshield Chem scrip closed at Rs63.5 Thursday on the Bombay Stock Exchange, up 4.09 per cent over yesterday's close of Rs61.
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