Stock In Action - 19th November 2012

SREI Infrastructure is planning to raise around USD 500 million through infrastructure debt after receiving a certificate of fund registration from the market regulator SEBI. As per media reports, the funds would be raised early in 2013 and would focus on certain sub-sectors which provide good regulatory clarity like toll roads, power transmission, etc. On the back of this news one may see volatility with a positive bias in the share price of SREI Infrastructure in today’s trading session.

According to Business Standard, the loan book of the rural housing finance subsidiary of Mahindra & Mahindra Financial Services (MMFS) will grow up to Rs 1,000 crore by the end of the fiscal. The company has a target to take the book up to Rs 4,000 crore by the end of FY15 as there is a good demand for the company’s offerings. On the back of this news one may see volatility with a positive bias in the share price of MMFS in today’s trading session.

United Bank of India (UBI) expects its loan growth to be lower by around 14 to 15 per cent for FY13 even as it plans to sell bad loans that will help improve its profitability going ahead. One should note that the bank’s loan growth has been below the RBI’s projection of 16 per cent for March 2013. UBI plans to sell bad loans worth approximately Rs 200-250 crore to asset reconstruction companies and it has already identified around 70 such accounts. The bank aims to bring down its gross NPA approximately by 55 basis points to 3.25 per cent by March 2013, which is six months away. On the back of this news one may see volatility in the share price of UBI in today’s trading session.

According to media reports, BHEL is believed to have emerged as the lowest bidder from the other three major companies, namely L&T, Chinese firm Dong Fang and BGR Energy for supplying equipment for a 1,320 MW thermal power project to be set up in Odisha. However, the official announcement is expected to be made on November 23. On the back of this news one may see volatility in the share price of BHEL in today’s trading session.

According to Economic Times, SRS Cinemas, part of the BSE-listed SRS Ltd, plans to add close to 20 screens to take its total count to 51 screens by the end of this fiscal as it eyes expansion across cities like Bhiwadi, Shimla and Lucknow. The current footfall numbers are about four lakh a month with the 33 screens that the company operates. On the back of this news one may see volatility in the share price of SRS in today’s trading session.