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Friday, April 16, 2010

Gujarat Ambuja Exports: Sharebuyback Jan 15,2008 Avg Price 34.26

Here is the official communication to Bombay Stock Exchange by the company for the share buyback which was closed on Jan 15,2008 the Average buyback price was 34.26 no of shares bought: 9,66,615 Total money used for buyback: 3.3Cr.

As mentioned this was done in preperation for the sharply higher expected revenues from the maize plant setup in uttarachal. The stock during the buyback did reach a high of 104.6 per share on Jan 2,2008.

If we further read the complete document the high price for buyback was set at 38 per share and the amount of money available for buyback was 26.25Cr.
It is a SEBI Order that buyback can be done with free reserves only and only 10% of the free reserves can be used for share buyback.
Considering that 26.25Cr was the kitty for buyback we can safely assume the free reserves with the company in 2007 was atleast 262.5Cr. Right now the market cap of GAEL is 235.2Cr (CMP:17/-)

So folks Right now GAEL is dirt cheap .. I hope you all will pass on some profits back to me (Virtually!!)

Here is the snapshot of the buyback that was done at avg price of 34.26

 The stock right now is languishing becuase of supply side issues. Quantum reduced their holding of GAEL stock
BSE 1,05,000 shares sold

NSE: 1,79,000 shares sold

They have sold almost 2% stake from 2007 till date:
Stake June 26,2007: 7,040,841
Stake March 8,2010: 2,815,802

Right now Shareholding in GAEL is as follows:
Reliance Growth Fund: 4.26% 5,888,660
Quantum M Ltd: 2.65% - 3,669,339

Conclusion: Buy ..Buy.. Buy.. GAEL


Anonymous said...

ambuja zinc,ambuja electrocasting,ambuja ship,ambuja steel, ambuja flour,camper concast and of cors gujarat ambuja exports..

all these companies have something in common..the promoter..and all of them, except gujarat ambuja exports is delisted/bankrupt/wound up..

just something for u to think about..no disrespect..

What'sUp Prahalad said...


Can you provide some links where I can confirm this information..

1. that the promoters for ambuja zinc, ambuja electrocasting, ship,steel, flour.. etc are same as Gujarat Ambuja Exports

I have done my homework.. but there can always be skeletons in the cupboard..

looking forward to hearing from you

=happy investing