New Delhi, June 25: The scrips trading cum-bonus on the Bombay Stock Exchange (BSE) are witnessing a spurt in prices, the prevailing uncertainty in the market notwithstanding. During the last four days, the appreciation has been as high as 19 per cent in BASF India while Hoechst Sch Agro has moved by 6 per cent, which is the lowest among cum-bonus candidates. Other such scrips which also have registered respectable rise in prices include Ranbaxy Laboratories, Knoll Pharma, Berger Paints, JB Chemicals and Jayashree Tea.BASF India, the market leader in the domestic leather chemicals, has offered bonus in the ratio of one equity share for every two shares held in the company, entry in other scrips at the current level would give investors an equal number of additional shares after the bonus allotment. In addition, as a bonus over the bonus offer, all these companies also have recomended liberal dividend for the fiscal 1998.
While Ranbaxy and Knoll Pharma both have proposed a 80 per cent dividend, BergerPaints and Hoechst Sch both have proposed 70 per cent, 60 per cent has been proposed by Indo National and Jayashree Tea, 50 per cent by Elgi Tyres, 40 per cent by JB Chem and BASF India has proposed 35 per cent.
Interestingly, almost all the companies, except Ranbaxy Labs, have low equity base. This ensures that even after the bonus allotment, the inflated equity would not lead to a significant dilution in earnings per share.
Whereas Ranbaxy's equity is Rs 53.72 crore, for BASF India and Berger Paints it is Rs 16.1 crore and Rs 11.72 crore respectively. All the other companies have a much lower equity base.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
