CIT - Two (02) New Share for every Eleven (11) existing issued shares at Rs80.00
CFI - Three (03) New Share for every Ten (10) existing issued shares at Rs80.00
Last edited by sriranga on Mon Jun 11, 2012 7:06 pm; edited 1 time in total
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Last edited by sriranga on Mon Jun 11, 2012 7:06 pm; edited 1 time in total
Last edited by Monster on Wed Jun 13, 2012 12:34 pm; edited 1 time in total
Last edited by Antonym on Tue Jun 12, 2012 11:47 pm; edited 1 time in total
Antonym wrote:My gut instinct tells me that CIT & CFI will get merged at some point, and this rights issue is just the preliminary step. After the issue, both companies will have 6.5 million shares each.
Based on current market price, I have tried to calculate a possible post-issue price and rights price. Please let me know whether there are any logical flaws in my calculations.
Colombo Investment Trust PLC
Current Market Price: Rs 106.70
X Number of Shares (pre-issue): 5.5 million
= Market Value of Company (pre-issue): Rs 586.85 million
+ Cash Infusion through Rights Issue: Rs 80 million
= Market Value of Company (post-issue): Rs 666.85 million
/ Number of Shares (post-issue): 6.5 million
= Assumed Market Price (post-issue): Rs 102.59
(-) Rights Issue Price: Rs 80
= Value of Rights: Rs 22.59
Colombo Fort Investments PLC
Current Market Price: Rs 118
X Number of Shares (pre-issue): 5.0 million
= Market Value of Company (pre-issue): Rs 590 million
+ Cash Infusion through Rights Issue: Rs 120 million
= Market Value of Company (post-issue): Rs 710 million
/ Number of Shares (post-issue): 6.5 million
= Assumed Market Price (post-issue): Rs 109.23
(-) Rights Issue Price: Rs 80
= Value of Rights: Rs 29.23
slstock wrote:
Observation:
CIT has lesser pubic holidng than CFI. Also CIT portfolio vlaue is more as some already calculated. But right now CIT is only following CFI for some reason. Also CIT right issue dilution is lesser than CFI so the the intrinsic value of CIT should be more in that case too.
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