Volatility afflicts Mahindra Gesco Developers:
Mahindra Gesco Developers slipped 4.50%, to Rs 722.50 on a high volume today. The counter clocked high volumes of 20.12 lakh shares on BSE. The stock had tanked to a low of Rs 700 in early trade and recovered to hit a high of Rs 750.90, as buying resumed. The stock has been witnessing high volatility on high volume since the past few sessions. From Rs 518.80 on 07 August 2006, the stock surged a whopping 68% in just eight trading sessions. The average weekly volume also soared to 20.77 lakh shares on BSE, which are almost 7.5 times its annual average volumes of 2.82 lakh shares. Here, it started declining till Rs 756.50 by 23 August 2006, on profit booking after a sharp surge. Brushing aside concerns of a revenue loss raised by the finance ministry, the Empowered Group of Ministers on special economic zones on Wednesday decided not to impose any further caps on the number of zones that can be set up in the country. The group said it would examine the need for any further policy changes after 75 of the already approved zones become operational, or within six months from now, whichever was earlier. India is experiencing extraordinary growth in real estate demand. The total foreign holding in the counter has undergone a sea change. From 27.16% holding as of March 2006, it dipped sharply to 13.35% in June 2006. A steady offloading from them led to a sharp fall in the counter, which was once a favourite among them. Meanwhile, the public holding increased to 16.83% as of June 2006, from 12.44% in March 2006. The company’s latest paid-up equity share capital is Rs 31.03 crore. Recently, Mahindra Gesco announced that the Government of India has approved Mahindra group's proposal of a special economic zone (SEZ) for biotechnology to be setup at Ghodbunder Road, Thane, a suburb of Mumbai, for approximately Rs 150 crore. The proposed SEZ will be spread over 72 acres of land owned by the company. The proposed SEZ will provide the same world class standards that have made Mahindra World City SEZ in Chennai a big success. Earlier, Mahindra Gesco Developers and Rajasthan State Industrial Development & Investment Corporation formed a joint venture to develop a 2,500 acre special economic zone and a 500 acre domestic tariff area (DTA), 17 kilometres from Jaipur. Mahindra Gesco is also setting up a special economic zone spread over 3,000 acres, off the Mumbai-Pune highway. The project is expected to generate an investment in excess of $ 2 billion (Rs 9,000 crore) and 75,000 jobs, reports say. In late June 2006 - Mahindra Gesco Developers approved the proposal at its meeting on Monday. The board has decided to issue 65 lakh equity shares partly through a follow-on public issue and partly to the qualified institutional investors under the new scheme announced by SEBI recently. The timing of the public issue will be decided later, depending on the market conditions. The company requires capital for its on-going real estate projects as well as its proposed SEZ in Pune. The Mumbai based company had signed an MoU with the Maharashtra Government to set up a special economic zone in Pune. This is the third such project being developed by the company. Mahindra Gesco is one of the larger players in the organised sector for property development and consulting. It plans to expand activities to all major cities in the country. Mahindra Gesco registered a net profit growth of 47.6% to Rs 3.38 crore (Rs 2.29 crore) for Q1 June 2006. Net sales during the period increased to Rs 34.28 from Rs 24.61 crore. [From Internet]
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Suman Mukherjee
India.
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