Stone India plans Rs 200-cr stake buy in European co
Our Bureau KOLKATA
DUNCAN Goenka group company, Stone India, is eyeing an acquisition in Europe to capture the European railway components market. The company is close to acquiring a controlling stake in an European firm manufacturing products for railways for little less than Rs 200 crore. Speaking to mediapersons at a meeting held in Kolkata on Monday, Stone India chief executive officer & managing director Amitava Mondal said: “We are trying to buy the company through the bidding process. A special purpose vehicle (SPV) will be formed and registered at either Cyprus or Netherlands to buy the assets of the European firm.” “Apart from Stone India, a Duncan Goenka group investment firm will also pick up stake in the proposed SPV to be floated. Dresdner Bank, which has just been taken over by Commerzbank AG, may part finance the buyout if we clinch the deal,” Mr Mondal added. Elaborating further, Mr Mondal said, “We have already crossed the first three stages of the bidding process before we were chosen for the last round. A final picture would emerge within a month’s time. In fact, we have been looking to acquire a global firms engaged in the railway components business primarily in East Europe, Switzerland and Europe without any success for various reasons.” Currently, the only presence Stone India has in the global market is that it exports brakes used by the railways to New Zealand, Africa (including Tanzania and Mozambique), Australia and Vietnam. The Duncan Goenka group company hopes to clock revenues of Rs 120 crore in the current fiscal against Rs 92 crore registered last year on better orders from Indian Railways. It also plans to invest Rs 25 crore in a new unit at Nalagarh in Himachal Pradesh taking the total investment to Rs 35 crore. The unit, expected to begin commercial production by end-September, will make biological toilets, pneumatic suspensions, converters and inverters, computerised brake systems, end of train telemeters, fault diagnostic and control systems as well as microprocessor-based locomotive control systems for the Indian Railways.
Our Bureau KOLKATA
DUNCAN Goenka group company, Stone India, is eyeing an acquisition in Europe to capture the European railway components market. The company is close to acquiring a controlling stake in an European firm manufacturing products for railways for little less than Rs 200 crore. Speaking to mediapersons at a meeting held in Kolkata on Monday, Stone India chief executive officer & managing director Amitava Mondal said: “We are trying to buy the company through the bidding process. A special purpose vehicle (SPV) will be formed and registered at either Cyprus or Netherlands to buy the assets of the European firm.” “Apart from Stone India, a Duncan Goenka group investment firm will also pick up stake in the proposed SPV to be floated. Dresdner Bank, which has just been taken over by Commerzbank AG, may part finance the buyout if we clinch the deal,” Mr Mondal added. Elaborating further, Mr Mondal said, “We have already crossed the first three stages of the bidding process before we were chosen for the last round. A final picture would emerge within a month’s time. In fact, we have been looking to acquire a global firms engaged in the railway components business primarily in East Europe, Switzerland and Europe without any success for various reasons.” Currently, the only presence Stone India has in the global market is that it exports brakes used by the railways to New Zealand, Africa (including Tanzania and Mozambique), Australia and Vietnam. The Duncan Goenka group company hopes to clock revenues of Rs 120 crore in the current fiscal against Rs 92 crore registered last year on better orders from Indian Railways. It also plans to invest Rs 25 crore in a new unit at Nalagarh in Himachal Pradesh taking the total investment to Rs 35 crore. The unit, expected to begin commercial production by end-September, will make biological toilets, pneumatic suspensions, converters and inverters, computerised brake systems, end of train telemeters, fault diagnostic and control systems as well as microprocessor-based locomotive control systems for the Indian Railways.
My Comments:
I hope this makes end to all speculation whether this co is growing or not...........
I hope this makes end to all speculation whether this co is growing or not...........
and I would like to add here what I have read somewhere else and I like that sentence very much .....
"Until today nobody has got NOBEL PRIZE in Economics for theory on "predicting tomorrow's stock prices today."
Rajeev Ji,
ReplyDeleteAm a regular reader of your blog and following closely all your views.Still I remeber few months back u wrote here that Crude will tank by more than 30 percent.Today Crude is trading around 104$.That time it was around 140$.Imagine if someone have taken short in Crude futures,am sure he wud ve earned 400 %.Very recently u gave a buy call for Shriram EPC and it also gave 100 % return in less than a month.
My point is people always wrote about negative things about ur calls if the stocke recommened by you goes-down.But they will never show their gratitude to you if they make money.
In fact,u r writing this blog without getting paid...
I am sure your sole objective is to make small investors like me to make some money.
I am really grateful to u and your attitude.
God gives you peace,happiness and wealth.
Keep up the good-work.
Regards,
Sambath
Hi Sambath,
ReplyDeleteThanks for the kind words.
That happens and that is the way of life...I have come long way here.
I have been telling that crude is speculation and the way it is tanking there leaves no doubt in my mind that it will be going below $80 and even $70...I remember I had aleady given a call of crude going to $70-72 levels 3-4 months back.
I also think that market should go up and try to touch the previous high by next March....
Let us see what happens....
Rajeev
ReplyDeleteI second Kalanjiyam's comments. U r a great friend to a serious long term investor. I need your advise on the following. I have taken strong position on the following stocks. Gujarat NRE coke, Gujarat State Petronet, Sesa Goa, PTC India. All are coming down heavily. I am investing for 12-18 months. Can I hold or sell for loss and switch to other stocks? Please advise
thanks
Venu
friends,
ReplyDeleterejeev ji's call on on oil was spot on.and yet the market is where nobody who had a corelational linkage thought it would be. may be it wd playout sometime in the future.lets hope it wd. with the dollar getting stronger beyond all expectations, one thought that the IT sector wd out perform. But IT sector was primarily the reason for todays fall. so the net story is that our concept of fundamental reasoning may not always dictate how the market behaves.Mostly reasons which affect sentiment of major market participants dictate market behaviour.
So what next? quite confusing. I had earlier opined that there wd be a up-down-up movement in the indices before the BIG fall commences. I had also felt that that the markets closing below 14000 wd indicate end of the bear market rally. the first upleg is over and we r on the down leg
which is bang on 14000. So is there an upleg left? when will it happen? Yes i feel one upleg is still left and i feel it may take place anytime frm now to 13700. But this upleg will be limited to 350-450 points on the sensex and will offer bears a great shorting opportunity ( i dont short).Those holding longs may take their call accordingly . Investors with long term horizons need not worry as it may all be back to good old times in a few months, if u have the conviction to hold on through a slide. happy investing.
Rajeev Nice Article
ReplyDeletehttp://seekingalpha.com/article/91248-value-investing-vs-value-pretending
Thanks Hiren,
ReplyDeletethat was a great article and insight.....
Thanks Narain,
ReplyDeletegood info for the readers....
Hi Rajeev:
ReplyDeleteMarkets tanked again on monday by 469 point due to Lehman filing chapter 11. Are we heading for Diwali sale ;) or in US terms Thanksgiving sale ,all the well known scripts are available at attractive discounts, it great time to buy at every fall. But I would want to points that India has long way to go before decoupling from US economy, I still feel its tightly coupled with US economy.
And I being in US I can sense we are heading for scary times ahead for atleast next 12 months.