Financial re-engineering can do wonders if not for the company's bottomline but for its scrip price. Buoyed by the hint of a financial restructuring, Blue Dart scrip has zoomed from Rs 27 to Rs 34.5 in just 4 trading sessions. The company has sold two aircrafts to ICICI. The aircrafts were operated by Blue Dart Aviation, a wholly owned subsidiary of the company. The company will continue to operate these aircrafts pursuant to the lease of these aircrafts from ICICI.

The company has recently tied-up with south India-based French Express to widen its reach. Blue Dart, one of India's largest integrated express company, as a result of this tie-up, would be able to reach 516 locations in south India as against its present reach of 283 locations in Andhra Pradesh, Karnataka, Tamil nadu, Kerala and Pondicherry. This network expansion enables Blue Dart to offer its customers access to remote towns and villages in the region, that were earlierinaccessible.

Buyback push

Essel Packaging's board proposal for buy back of company's shares has met with enthusiasm in the market. The scrip, which was trading at Rs 203 on December 18 and in just seven trading sessions, has zoomed to Rs 242. The marketmen are expecting the scrip to go up to Rs 300 in another seven trading sessions.

The book value of the scrip as on March 31, 1998 stood at Rs 130.12. The company has free reserves worth Rs 181.09 crore and its debt-equity ratio stood at 0.35 as on March 31, 1998.

Hikal Chemicals up on Sebi directive

Hikal Chemicals' stock is riding high on expectations of an open offer from Sumitomo Corporation of Japan as well as the Kalyani group and the Hiremath family.

The scrip, which was last traded on BSE on December 22, suddenly shot up by 25 per cent in one trading session after the Sebi order directing the three companies to make an open offer to Hikal Chemicals' public shareholders.The Sebi directive comes on the heels of the preferentialallotment made by Hikal Chemical Industries of 14,66,700 equity shares to its promoters (the Kalyani group and Jai Hiremath & Associates) and Sumitomo Corporation of Japan in September.

At that time, the scrip had flared to Rs 34.50, but subsequently it fell to Rs 20 after Sebi began its investigations.

Hikal Chemicals, which is engaged in the production of chemicals for the pharmaceutical, agrochemical and dye industry, has been promoted by the Hiremath family and Surajmukhi Investments & Finance, a wholly-owned subsidiary of Kalyani Steels. Before the preferential allotment, Pune-based Kalyani group and the Hiremath family held 30 per cent stake each, while Sumitomo Corporation of Japan had an 18.77 per cent holding in the Rs 5.03crore paid-up capital of Hikal Chemical Industries.

Financially, the company has been slipping. In the first-half of 1997-98, the company incurred a net loss of Rs 2.74 crore on a turnover of Rs 19.1 crore. During financial year 1997-98, Hikal Chemical had earned a net profitof Rs 92 lakh on an operational income of Rs 19.01 crore.