Sunday, April 1, 2012

Gateway Distriparks Bought by Morgan Stanley for Rs. 37.66 Crore

Prem Kishan Gupta,
Deputy Chairman & MD,
Gateway Distriparks Ltd.

By Staff Reporter:

Gateway Distriparks Ltd (BSE: 532622, NSE: GDL) counter on Friday witnessed massive buying of  24.90 lakh shares by the Foreign Institutional Investor, Morgan Stanley Asia (Singapore) Pte, amounting to 2.30% of the total shares in the company.

The significant buy was split up into two trades – one each at NSE and BSE, of equal size and identical price. At Rs. 151.26 a share, Morgan Stanley’s total buy was worth Rs. 37.66 crore.

At both the exchanges, there were no identifiable institutional sellers or promoters as counterparties to the buy.

Enthused by this strong demand, and on a strong overall market on Friday which was up by over 3%, Gateway Distriparks stock marked a new 52-Week High of Rs. 160.40 in NSE and Rs. 159.90 in BSE.

Earlier, StockExplain had reported that another FII, Citigroup Global Markets Mauritius, had sold off significant quantities of Gateway Distriparks on February 17th. This Citi arm had offloaded 0.51% of GDL at Rs. 143.80 a share.

After Citigroup’s sell, the stock corrected slightly to Rs. 139.50, but rebounded quickly, soaring by around 7% from Citi’s sell level, and marking a new 52-Week High, which shows that there is significant buying interest in the counter.

Two days before Morgan Stanley’s buy, Indea Absolute Return Fund had bought 5.62 lakh shares or 0.52% in GDL. The buy was at a slightly better price of Rs. 148 a share, and the deal was worth Rs. 8.32 crore.

The cues for these recent buys include the recent announcement of a second interim dividend by the company. The intention for this dividend was disclosed on 22nd March and the record date was fixed as April 5th on 22nd itself. Finally, on Thursday, 29th March, the dividend was declared as Rs. 3 per share of face value Rs. 10.

Another buy cue has been the recent railway budget of India which is seen as of long-term benefit to rail container operators like Gateway Rail Freight Ltd, a subsidiary of Gateway Distriparks.

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