Date:12/12/2006 URL: http://www.thehindubusinessline.com/2006/12/12/stories/2006121201721500.htm

Back AB Nuvo betting on Idea IPO

The stock of Aditya Birla Nuvo has been rising sharply in recent times accompanied by improved volumes. Even when the benchmark indices showed sign of nervousness, the stock gained 17.5 per cent in the last one month. However, in line with general market condition, on Monday, the stock displayed some weakness despite opening higher at Rs 1,209.60.

It closed at Rs 1,158.45, against the previous day's close of Rs 1,202.65. According to dealers, the company's stake in Idea Cellular could unlock fresh value for it once the Idea issue hits the capital market. Idea Cellular, in which Aditya Birla Nuvo owns about 36 per cent stake, plans to raise about Rs 2,500 crore through an initial public offering. With the telecom sector showing robust growth and displaying high valuations, the IPO is

likely to have a positive impact on Aditya Birla Nuvo, dealers said.

K.S. Badri Narayanan