Gyan from company website:-
Cals Refineries Ltd. has plans to set up a total of 200,000 BPSD (approx 10 MMTPA) of oil refining capacity on India’s east coast in the State of West Bengal, in phases, thereby emerging as the third largest oil Refining and petrochemical company in the Indian private sector.
Lets drill down into the facts and fictions.
Thousands of investors are stuck in this counter and they have have sunk so deep that there seems to be no way out.
Cals Refinery started its stock market journey in 1994 with the share price quoting a high of 33.75 and low of Rs 20 on a face value of Rs 10. Since then it has been a dreamer seller for millions of investors with company coming out with lucrative news. Operators have been very active in this counter.
Lets see the price fluctuations: From Rs 33.75 in 1994 stock touched Rs 1.20 in 1997, again upswing in 2000 to Rs 27.45 then the same pattern continues and stock goes to make an all time high of Rs 128 in early 2008 (thanks to bull market...pain for those who bought it then). Stock splits from 10 face value to Rs 1 face value.Now starts the downward journey. Active boarders every where commenting to hold on as the Refinery will come up and stock will be at RS 30. (Optimism has no limits!!!)
Voluntary DELISTED for Delhi Stock exchange in 2003.GDR issue of USD 200 Million in 2007 to fund the dream refinery.
Cals updates on progress in 2009 stating "The Company has received the environment clearance to set up the 5 MMTPA refinery at Haldia, West Bengal from the Ministry of Environment and Forest subject to the terms and conditions as mentioned in the approval and The Government of West Bengal has approved a special package of incentives under the West Bengal Incentive Scheme 2004 subject to certain terms and conditions.
2011 - IMP latest news you can use: As per business tabloids WB govenrment may not grant further extension for Financial Closure or .........(?????)
Further updates : Cals Refineries signs Memorandum of Understanding (MOU) with Bharat Petroleum Corporation Ltd (BPCL) on June 17, 2009 for off-take of part of petroleum products by BPCL from CALS in its first phase which is a 100,000 BPSD crude oil refinery after accounting for the products committed to British Petroleum (BP) and the entire petro products from CALS in the second phase of expansion which is another 100,000 BPSD refinery at Haldia, West Bengal. The product off-take by BPCL will include outputs such as LPG, Propylene, Fuel Oil, Sulphur, Naphtha, Gasoil etc.
More updates come in :- Al Qebla Al Watya of Kuwait on November 25, 2010 has signed agreements with the Company as its first entry into the Indian oil refining Sector. The agreements cover cash investments of USD 150 million through GDR route. The investment is subject to all Indian government and regulatory approvals.
This news took the stock in an upper circuit frenzy
Updates continues:---------------------------
Cals Refineries Ltd (the "Company") has entered into certain agreements to purchase the Cenco and Atas refinery equipment, on a refurbished basis, from certain affiliates of Hardt GroupGmbH ("Hardt") and has agreed to induct such affiliates of Hardt as strategic investors. The refinery equipment being bought is currently located in the US and in the Turkish Republic of Northern Cyprus. Hardt will procure that the equipment gets refurbished before it is delivered to the Company. The transaction is subject to regulatory and other customary closing conditions. Subject to receipt of necessary approvals, the purchase price for the equipment shall be paid though issuance of Global Depository Receipt (GDRs) to affiliates of Hardt in an aggregate amount of US $317 million and the balance of US $100 million shall be paid in cash at a later date. With the purchase of the refinery equipment, the aggregate refining capacity of the Company planned at Haldia will become 200,000 barrels per day (bpd). Hardt has also agreed to subscribe for certain equity shares of the Company on a preferential allotment basis, subject to Shareholders and customary approvals, in an amount of up to US $7 million (in rupee equivalent) in one or more tranches and to nominate two directors to the Board of the Company."
Cals Refineries informs the Hardt group awarded Saipem, Italy, a subsidiary of Eni S.p.A., and one of the largest and best balanced turnkey contractors in Oil and Gas industry, the Detailed Feasibility report for the 200,000 Barrels per day refinery project at Haldia, West Bengal. If the parties will reach an agreement on the terms of the proposed feasibility report within 80 days, the Company will award Saipem the lumpsum Engineering - procurement - Construction - Commissioning (EPCC) contract for the Project.
No limits to the updates coming from company, every time good news comes in the stock actively backed by operators touches upper circuit. Smart traders unload and dream buyers get stuck and many more will................
2011 - Dreamers were waiting for CCEA approval for company to raise funds by way of FDI and then comes the big blow,SEBI bans the company from issuing any further securities as it finds manipulative trading in Cals shares.
Ok, what now????? People finally loose hope (heavy selling witnessed, people trying to recover whatever money they can...only if they can after paying a killing brokerage) but suddenly out of the blue the CEO of Hardt group comes on air in September 2011 and talks about his group taking 60% stake in this company and shares optimistic view of Cals being functional by 2014.
Oh my Gosh....Dreamers are back (HOPE IS WHAT KEEPS US ALIVE)
"Yesterday has been and gone
Tomorrow will I find the Sun or will it Rain - Ozzy Osbourne"
Search the net a million stories will appear for Cals after all who doesen't want to be a millionaire.
Those who are holding this share below Rs 0.50, wait for the Bulls to come on parade (if and only if they come) sell and never look back.
"Dream on , drean on, dream on till your dream comes true -Aerosmith"
