BRICS PCG recommends a 'Buy' on HBL Nife. The report states that the company has announced a rights issue of 22,07,232 equity shares of Rs 10 each at a premium of Rs 90 per share.The issue will remain open for a month starting June 29, and will raise a total of Rs 2207.20 crore. This will dilute the equity by 10%. The company's growth strategy is unfolding as planned.The battery division, which is currently the mainstay of the company is expected to grow at 28.7% CAGR over the next two years.The management has further reiterated that its growth strategy, which will propel HBL to a new league with a presence in the rail and defence segments, is also proceeding as planned. There could be delay of 1-3 months towards regulatory aspects, but the business will start to contribute from FY07 to FY08.
