Friday, March 16, 2012

Aban Offshore Sold by the FII, Robeco, for Rs. 22.02 Crore

Aban Offshore - Deep Venture - Drill Ship.
By Special Correspondent:

Aban Offshore Ltd (BSE: 523204, NSE: ABAN) on Thursday saw a significant sell of 4.45 lakh shares by the Foreign Institutional Investor, Robeco Capital Growth Fund, amounting to 1.02% of the company. The noted sell, undertaken at NSE, was at Rs. 494.86 a share, making the deal valued at Rs. 22.02 crore.

Interestingly, Robeco was not holding more than 1% stake as of Q3 end, revealing that the FII had bought Aban shares in the current quarter, probably to bring its average prices down. The sell is also likely to be a total exit by the FII from Aban.

Earlier, StockExplain had reported that Aban Offshore had seen a notable buy by the FII, Goldman Sachs. On 2nd February, Goldman Sachs had bought 4.48 lakh shares or 1.03% of Aban for Rs. 22.57 crore at a rate of Rs. 504.25 a share.

Post the Goldman Sachs buy, Aban had rallied till Rs. 571.90, but pulled back later, and even went down than the GS’ buy level, to touch Rs.445.10 recently. Robeco Capital Growth Fund’s sell on Thursday has come after a bounce back from this low.

Notably, Robeco’s sell has come on the same day that Aban Offshore announced a second tranche of FCCB redemptions for Rs. 850 crore, in a deal that is expected to have a high coupon rate. Earlier, in January, Aban had redeemed Rs. 800 crore worth of FCCBs at a high coupon rate of 12%. 

Due to its high debt levels, Aban has been experiencing difficulty in obtaining refinancing at lower interest.

Another overhang on the stock is war concerns in Iran, where Aban has around 40% of its rigs deployed.

The key development to be watched is whether Aban would breach its support near Rs. 445, a level at which two FIIs, Nomura and GMO, had bought significant quantities in Q3.

Robeco's sell might also be following a pattern of cutting exposure to Indian stocks. On Thursday, StockExplain had reported Robeco selling significant quantities in realty major, HDIL.

Aban Offshore’s largest non-promoter investors are Life Insurance Corporation (LIC) of India, GMO Emerging Markets Fund, and PGGM World Equity B V GEPFEEM.

On the fundamental side, institutional investors will be looking forward to Q4 margins, as some of the ground gained in H1 was lost in Q3 on the margins front. Improvement is expected as and when more units become operational from this leading private sector offshore drilling contractor in India and some key overseas markets.

On Thursday, Aban Offshore closed trade in NSE at Rs. 474.40 down by 5.19%. On Friday, Aban opened trade unchanged, and is now trading up by 0.76%.

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