Cluster: Emerging Star
Price target: Rs190
Current market price: Rs174
Acquisition of DGIT Solutions
ORG Informatics (ORG) has acquired 100% stake in Singapore-based DGIT Solutions Pte Ltd. Earlier, ORG had successfully raised $10 million through a global depository receipt (GDR) issue in the overseas markets. The issue had been priced at around Rs155 per share and resulted in a dilution of the equity base by 28.6 lakh shares. The company had also considered a preferential issue of 6 lakh warrants to its investors; the same has now been put on the backburner. Instead the company is considering dilution of equity through a fresh issue of shares for its future acquisitions. The additional dilution will be in line with the preferential issue of warrants considered earlier.
Higher base effect subdues dispatch growth
Cumulatively the cement majors have reported a negative growth of 1% year on year (yoy) in the cement dispatches during December to 55.3 lakh tonne. We believe this negative growth can be attributed to the higher base effect as well as the operations of the companies at near capacity levels