Opinions requested on PNB

[pavvu_kk]

Where is NHPC heading?

Any ideas/suggestions?

Thanks in advance

 

[pavvu_kk]

Re: Where is NHPC heading?

Any experts tracking this counter?

 

[bunny]

Re: Where is NHPC heading?

Its a good buy, around these levels, but if you are in no hurry, wait to buy a few paise below 30. Todays NSE closing is 30.8.

 

[maknil]

Re: Where is NHPC heading?

buying will come in the demand zone @28.50

 

[allaboutintradaystocks]

Re: Where is NHPC heading?

I would also suggest you to buy it between 28.50 & 29 for a long term investment since there wont be much downside from there.

 

[pavvu_kk]

Should I subscribe to SBI Rights issue?

Though I understand what a Rights issue is, I'm unable to comprehend how would a 10:3 rights issue @540 per share would actually impact the CMP. Would it be prudent to apply for this Rights? Any expert comments will be deeply appreciated.

Thanks in advance

 

[SavantGarde]

Re: Should I subscribe to SBI Rights issue?

Since I Don't Have Details Of When The Rights Will Be Converted To Normal Share....

Rights Issue Pricing Doesnt The Affect The Price Of Already Listed Shares.
Rights Will be Listed Separately With Different ISIN & Will Only Become At Par With Listed Entity As Per The Offer Document Of The Rights Issue.... I Dont Have The Offer Document Available To Me To Tell You Of The Exact Date & Year When The Rights Will Trade At Par With Present Listed Entity.

You Shouldn't Even Think Twice Before Applying For All The Rights Available To You For This....It Is A Very Very Good Deal.

Happy & Safer Investing

SavantGarde

Though I understand what a Rights issue is, I'm unable to comprehend how would a 10:3 rights issue @540 per share would actually impact the CMP. Would it be prudent to apply for this Rights? Any expert comments will be deeply appreciated.

Thanks in advance

 

[pavvu_kk]

Re: Should I subscribe to SBI Rights issue?

Just FYI, the ex date is Sep 4, 10.
Since the total number of outstanding shares would increase, there would be a decrease in EPS and hence the price has to reduce. Isn't this correct?

Thanks in advance

 

[SavantGarde]

Re: Should I subscribe to SBI Rights issue?

It Is Not Ex-Date It Is The Last Date Of Application Same As Any IPO.

Rights Issue Shares Will Be Listed Separately, With A Different ISIN Number.

Price Of Presently Listed Shares Shall Not Change.... Since SBI Is Receiving Money For The Issue Of Rights Share From Existing Share Holders

Price Of Listed Entities Only Change On The Ex-Date In The Event The Following:

1) Bonus
2) Dividend
3) Split
4) Reverse Split

5) In Case Of Demerger Where Existing Share Holders Are Given Shares Of Demerged Entity/Entities In A Ratio Announced Beforehand.

Point 5 Still Doesnot Amount To Price Change As The First Four Points Listed Above.

Still Stand By All That I Have Stated In The Post Below.

Happy & Safer Investing

SavantGarde

Just FYI, the ex date is Sep 4, 10.
Since the total number of outstanding shares would increase, there would be a decrease in EPS and hence the price has to reduce. Isn't this correct?

Thanks in advance

 

[krishna23]

Re: Should I subscribe to SBI Rights issue?

The rights issue is not for SBI but its associate bank State Bank of Mysore,where one is entitled("Right of first refusal") to purchase 3 shares for every 10 held on or before the Ex-date.

http://www.bseindia.com/xml-data/corpfiling/AttachHis/State_Bank_of_Mysore_250810.pdf

540 is an attractive price which is below its FY10 Book Value of 575.

More info on rights issues here
http://en.wikipedia.org/wiki/Rights_issue