VSNL in limelight

Anand Ram

Videsh Sanchar Nigam: Videsh Sanchar Nigam Ltd (VSNL) was the cynosure of investors' eyes this week as the company's board announced a special interim dividend of 750 per cent aggregating to over Rs 2,350 crore.

The pay out would fetch investors Rs 75 a share. This move has long been anticipated by the markets from the cash rich state-run company, as the government edges closer towards disinvesting its stake in the concern. Share prices increased by 2.46 per cent over last week's close, to end the week at Rs 239.10. Volumes too soared over four-fold to 16,20,922 shares, as investors clamoured to increase their holdings in the company.

Infotech Enterprises: Engaged in the software development business in visual and geographic design, this low-key market player registered a surprising 33 per cent increase in its share prices. The market rally was fuelled by news that the company would sell a 20 per cent stake to the well-known jet engine manufacturer Pratt & Whitney - a company that also accounts for up to 25 per cent of Infotech's revenue stream. Share prices of Infotech vaulted by Rs 80.5, to close the week at Rs 324.75.

Polaris Software: Prices of this company too ended higher towards the end of the week, as it appeared unusually upbeat about its top-line performance. Polaris said that it would continue to recruit people for its project implementations in the largely flagging software sector, despite its current employee utilisation rate of around 67 per cent. Herd instinct dominated the counter and share prices of Polaris surged over 9 per cent from last week's close of Rs 200.6, to end the week at Rs 219.4. Volumes too shot up to over 37.34 lakh shares.

Cadbury India: Market interest in this counter revived in the middle of the week as the company's UK-based parent, Cadbury Schweppes Plc, announced that it would proceed to make an open offer to mop up the residual public holding of 49 per cent in its Indian subsidiary. The open offer price has been pegged at Rs 500 a share and the offer would result in an acquisition of around 1.74 crore equity shares. Expectations of such a move were already doing the rounds in the market and so the upside was largely limited. However, the stock managed to post 5.16 per cent gain to close at Rs 484.60 this Friday.

Sierra Optima: This Hyderabad-based software maker has recently received a 90-day termination order from its US stakeholder Sierra Atlantic which holds about 26 per cent in the former. Accounting for a significant portion of revenue, Sierra Atlantic's termination of purchase orders with the Indian company has probably caused sentiments to worsen in the latter's counter. The loss making company saw its share prices dip by over 21 per cent to close the week at Rs 65.65. Volumes too increased to 1,64,459 shares.

Tata Engineering: Tata Engineering, India's premier manufacturer of vehicles across diverse user segments, meanwhile saw its share prices go up after the market reacted favorably to growth in the company's sales. Sales of its Indica cars has doubled in November compared to the corresponding period last year. Medium and heavy commercial vehicles too have sold 37.4 per cent higher compared to last year. Share prices of Telco gained 2.46 per cent towards the end of the week to close at Rs 104.25.