JT Mobiles takes the ADR route

MUMBAI, May 24: Close on the heels of BPL Cellular's American Depository Receipts (ADR) issue, JT Mobiles is planning a $ 200 million ADR i...

MUMBAI, May 24: Close on the heels of BPL Cellular’s American Depository Receipts (ADR) issue, JT Mobiles is planning a $ 200 million ADR issue. JT Mobiles is one of the cellular operators for Karnataka and Andhra Pradesh.

BPL Cellular Holdings Ltd has finally completed a $ 100 million ADR issue last week, the first by any Indian corporate. The issue has been placed with six to seven funds abroad at a price of $ 7.50.(1 ADR=1 share). The company plans to obtain listing on the NASDAQ shortly, although even now it is eligible for settlement through Euroclear.

The issue represents 23.40 % of the company’s equity. The company’s earlier plans to raise $ 200 million in November 1996 did not take off because investors demanded a hefty discount in its offer price of $ 15 to $ 17.

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Meanwhile, the Skindia GDR Index recovered after falling for three consecutive weeks. A mixed trend prevailed in the international market during the week as price fluctuated in a narrow range on apprehension of a hike in petroleum price and continued disappointing corporate results.

However, the undertone seems firm as sellers do not appear tempted at higher levels and buyers are still around for the quality names.

The 64 GDRs gained 0.56 % and an average and their underlying fell 0.40 %. Due to a rise in GDRs as compared to a fall in underling share the Skindia GDR Index Premium increased from 20.27 % to 25.01 %

The GDR and local markets reacted unfavourably to ITC’s results which showed a 31.24 % increase in net profits to Rs 342.65 crore. On expectations of a higher growth in net profits, its GDR and share had moved up 8.62 % to $ 15.75 and 12.27 % to Rs 448.50 during the period May 12-19. However, its GDR fell 0.76 % to $ 15.63 and share 4.55 % to Rs 419.50 on announcement of results on May 21.

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Trading interest in its GDR increased as spread between and bids and offers came down sharply from 2.44 % (May 20) to 1.63 % (May 21) and turnover in the domestic market increased 8.48 % to Rs 226.09 crore. During the last six months its GDR has consistently moved up experiencing returns of 126.32 %.

The announcement of a 1:2 bonus by Bajaj Auto failed to cheer marketmen as they were expecting a more favourable ratio. The scrip fell from its intra-day high of Rs 919 to close at Rs 866. However, the news failed to have any impact on its GDR price. Telco is planning to raise $ 200 million from Yakee bond market in the next couple of months.