@aship wrote:Also, pls tell about warrents of NTB?
@Tubal wrote:I suspect that these warrants are the very reason that the price of NTB-N does not rise any higher. When the warrants are exercised the number of shares in existence increases, which in turn dilutes the EPS.
Though there is something in what Tubal says , there are only (roughly) 20 Mil shares of Warrants compared 200 Mil NTB.N. So thats only about 10%. With warrant conversion rate added ( Rs 35) I cannot see a massive dilution to the share EPS compared to many other companies with higher warrant issues. NTB should do well Dec quarter and especially the budget benefits should further kick in in March.
With a finance bank rally ( if it happens) NTB warrants are bound to go up with NTB.N. But we still did not see a major bank rally. Warrant can bring you higher gain than the share.
Having said that , I believe the warrant conversion to happen sometime end of february. So before then if bank rally happens it will go up. If a bank rally does not happen it might be advisable to dispose them as Warrants usually trade with a small premium to share price.
By the way I hold NTB.W.