Opinions requested on PNB

[pavvu_kk]

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.

Here is economic times article which clearly says that it is SBI and not SBM
http://economictimes.indiatimes.com...rights-issue-proposal/articleshow/6455033.cms

 

[pavvu_kk]

Re: Should I subscribe to SBI Rights issue?

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

SavantGarde

I stand corrected. Its not ex date. It is record date. However I have not received any forms to exercise my Rights. Sorry, but I have never been thru such a thing. So, I'm not sure how to go about this. I read somewhere that this can't happen from my DEMAT account.

 

[krishna23]

Re: Should I subscribe to SBI Rights issue?

Here is economic times article which clearly says that it is SBI and not SBM
http://economictimes.indiatimes.com...rights-issue-proposal/articleshow/6455033.cms

The article clearly mentions proposed right issue.One can only comment on the finer points once other details emerge.The issue is likely to be done by the end of this fiscal.

Just FYI, the ex date is Sep 4, 10.

The Record date is Sept 4,2010
Ex date is Sept 2,2010 for State Bank of Mysore.

 

[pavvu_kk]

Re: Should I subscribe to SBI Rights issue?

The article clearly mentions proposed right issue.One can only comment on the finer points once other details emerge.The issue is likely to be done by the end of this fiscal.


The Record date is Sept 4,2010

Since SBI has already set the record date and the premium per share, and the article clearly states that they are waiting for the approval from GoI (its major shareholder), it is more or less finilized.

However, what I'm confused about is if the price would get adjusted post the rights option. The wikipedia article pointed clearly says that the price would get adjusted. However, Savant mentions that it won't.
http://en.wikipedia.org/wiki/Rights_issue (Although the price on the stock markets should reflect a new price of $300 (see below), the investor is actually not making any profit nor any loss.)

 

[krishna23]

Re: Should I subscribe to SBI Rights issue?

I stand corrected. Its not ex date. It is record date. However I have not received any forms to exercise my Rights. Sorry, but I have never been thru such a thing. So, I'm not sure how to go about this. I read somewhere that this can't happen from my DEMAT account.

If you own State Bank of Mysore shares already don't worry,the forms will be mailed to you after the record date.

 

[krishna23]

Re: Should I subscribe to SBI Rights issue?

arey bhai it is State Bank of Mysore issue not SBI.Check the NSE website site to clear your confusion.

 

[pavvu_kk]

Re: Should I subscribe to SBI Rights issue?

I stand corrected;
SBM is doing a rights issue; and the record date (sep 4) and rights ratio (10:3) is for SBM
SBI is proposing a rights issue; other details are not yet available

Thanks Krishna & Savant for the clarifications

 

[SavantGarde]

Re: Should I subscribe to SBI Rights issue?

Simply Put, Anything (Dividend, Bonus, Split & Etc.) Which Is Equally (For Lack Of Better Word) 'Distributed' Among Each & Every Shareholder Of The Company Is Reflected In The Change In Price On The Ex-Date Announced....

Since Rights Issue Is A Matter Of Choice Left To The Shareholder, Entailing Extra Investment, Hence A Price Change Of The Original Listed Entity Would Not Be Fair To All, Especially Those Who Chose Not To Invest That Extra Money.

Therefore, Entity For Which Some Shareholders Have Participated By Investing Extra Money... Is Either Listed Separately With A Different ISIN Number & Traded As A Separate Instrument...Or Many A Times It Is Not Tradeable, Because It Carries A Certain Amount Of Lock-in Period.

Some Examples That I Remember Are TATASTEEL Rights Issue A Couple Of Years Back It Consisted Of 2 Issues In One With Different Ratio, One That Was For 125 & Second Was 300 (Prices Mentioned Here May Differ A Bit & Do Not Remember The Exact Pricing) & HINDALCO Preferential Shares.


Happy & Safer Investing

SavantGarde

what I'm confused about is if the price would get adjusted post the rights option. The wikipedia article pointed clearly says that the price would get adjusted. However, Savant mentions that it won't.
http://en.wikipedia.org/wiki/Rights_issue (Although the price on the stock markets should reflect a new price of $300 (see below), the investor is actually not making any profit nor any loss.)

 

[pavvu_kk]

Any Bull patterns in SBI?

Hello all,
SBI seems to be having a bull run (for various reasons). Wanted to know how does it look technically. Are there any bull patterns forming up? Any experts tracking this counter?

Thanks very much in advance.

 

[deadbrain]

Re: Any Bull patterns in SBI?

IMHO, SBI though bullish is in overbought zone now. Let us see what experts have to say.