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Saw Pipes spurts to 52-week high
June 12, 2003 16:38 IST
Saw Pipes spurted to its 52-week high of Rs 138.50 on BSE today even as the company said it had not received a Rs 122-cr order from Gail as reported in the media. At 15:26 IST, the scrip was trading higher by 12.02% at Rs 137 even as it slipped from the earlier peak. Over 10.4 lakh Saw Pipes shares were traded on BSE by then. Saw Pipes has now risen 90% from Rs 71 on 29 April 2002. Earlier today, the company clarified that it had not received any contract from Gail. However, it indicated that it has put in a bid for the same order.
Yesterday, reports stated that the company had in fact bagged the order from Gail . If the order had materialised that would have been the second order that the company had bagged from Gail. Earlier, the company had won an order worth $100 million from Gail for laying a 610-km gas pipeline between Dahej and Bijapur in Gujarat.
Today's rise may be also attributed to anticipation that the company is expecting another Rs 30-crore order from Indian Oil (IOC) to set up a pipeline between IOC's Gujarat refinery site at Koyali to Viramgam and Sidhpur.
The company's, as well as the pipelines sector's, bright prospects is inviting a bullish sentiment from marketmen. This is on the basis of the hectic pipeline laying and distribution work being undertaken in the oil and gas sector.
Promoted by the O P Jindal group in 1984, Saw Pipes, a Delhi-based company, produces thick-walled pipes, submerged-arc welded pipes and cold-rolled steel coils for which it had obtained technical assistance from US Engineers and Consultants, a subsidiary of US Steel Corporation. Its pipe division is located at Kosi Kalan, UP, and the coil division is located in Delhi.
As on 31 March 2003, promoters held a 55.17% stake in Saw Pipes, while the public and foreign entities held 22.41% and 15.97%, respectively.
Source: www.capitalmarket.com
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