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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » LDEV.R what a disappointment

LDEV.R what a disappointment

+9
2011_NewComer
innam
Fresher
thanujav
xhora
Quibit
tubal
SL.Market
morros
13 posters

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26LDEV.R what a disappointment - Page 2 Empty Re: LDEV.R what a disappointment Mon May 09, 2011 11:10 pm

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

xhora wrote:thx alot I think I get it now..

So one who apply for Additional shares will have now have
original 100 LDEV + 1500 from his rights + XXX amount of additional shares
and he will have the lowest average price. Nice Very Happy

Yes I think YOU got it right!!! I am really glad....
Every time you make a loss, it's a lesson learnt, you should not repeat the same mistake again. There will be many IPO's in time to come.. Sure you will get all of them right and be a winner.

I lost lot of money b4 I learnt the game... Currently I am buying LDEV normal shares at Rs 27.50 about Rs 2/= higher than the rights price. Hope this is not another lesson I am learning.

27LDEV.R what a disappointment - Page 2 Empty Re: LDEV.R what a disappointment Tue May 10, 2011 1:34 am

Slstock


Director - Equity Analytics
Director - Equity Analytics

Quibit wrote:
xhora wrote:thx alot I think I get it now..

So one who apply for Additional shares will have now have
original 100 LDEV + 1500 from his rights + XXX amount of additional shares
and he will have the lowest average price. Nice Very Happy

Yes I think YOU got it right!!! I am really glad....
Every time you make a loss, it's a lesson learnt, you should not repeat the same mistake again. There will be many IPO's in time to come.. Sure you will get all of them right and be a winner.

I lost lot of money b4 I learnt the game... Currently I am buying LDEV normal shares at Rs 27.50 about Rs 2/= higher than the rights price. Hope this is not another lesson I am learning.

Summary : It is now cheaper buy rights off market ( now at around RS 0.7) and subscribe if one wishes to.


1) If someone bought 100 LDEV at RS 80 before XR= Cost Rs 8000
If subscribe to 1500 rights = RS 1500*25= 37500
Total = Rs 45500

If someone asks for 25% more rights ( 400 additional rights) at Rs 25 the total average is 27.5

2) If someone bought 100 LDEV at RS 60 before XR= Cost Rs 6000
If subcribe to rights = RS 1500*25= 37500
Total= Rs 43500

If someone asks for 25% more righs ( 400 additional rights) at Rs 25 the total average is 26.75




Last edited by slstock on Tue May 10, 2011 5:37 am; edited 1 time in total

28LDEV.R what a disappointment - Page 2 Empty Re: LDEV.R what a disappointment Tue May 10, 2011 5:07 am

ipoguru


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Quibit wrote:
xhora wrote:thx alot I think I get it now..

So one who apply for Additional shares will have now have
original 100 LDEV + 1500 from his rights + XXX amount of additional shares
and he will have the lowest average price. Nice :D

Yes I think YOU got it right!!! I am really glad....
Every time you make a loss, it's a lesson learnt, you should not repeat the same mistake again. There will be many IPO's in time to come.. Sure you will get all of them right and be a winner.

I lost lot of money b4 I learnt the game... Currently I am buying LDEV normal shares at Rs 27.50 about Rs 2/= higher than the rights price. Hope this is not another lesson I am learning.

What's the logic behind to buy LDEV at Rs 27.50

29LDEV.R what a disappointment - Page 2 Empty Re: LDEV.R what a disappointment Tue May 10, 2011 8:21 am

Quibit


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Slstock, your calculation is right. But there is no restriction regarding the amount you could apply as addition rights. Shareholder with 100 shares can apply for any number of additional rights. Additional rights available will be allocated as per the amount applied for and cheques value.

Eg:
Shareholder with 100 shares applied for 900,000 shares
Shareholder with 2,000,000 shares applied for 100,000 shares.
Assume available unsubscribed rights are 500,000 shares
Allocation would be 50% of the total additional applications.
This will give 450,000 shares to shareholders who initially had only 100 shares but applied for higher additional rights as against 50,000 shares to the shareholder who owned higher number of shares but applied for lower number of additional rights.

Through this exercise your cost would. Become almost the cost of the rights issue. In case of LDEV it will be Rs 25/=

My logic of buying LDEV at 27.50 is entirely based on demand and supply of LDEV between the period of closure of the rights issue and the conversion of the rights. I believe it will move up during that period. It may prove wrong, We never kno..

30LDEV.R what a disappointment - Page 2 Empty Re: LDEV.R what a disappointment Tue May 10, 2011 8:30 am

Slstock


Director - Equity Analytics
Director - Equity Analytics

Quibit wrote:Slstock, your calculation is right. But there is no restriction regarding the amount you could apply as addition rights. Shareholder with 100 shares can apply for any number of additional rights. Additional rights available will be allocated as per the amount applied for and cheques value.

Eg:
Shareholder with 100 shares applied for 900,000 shares
Shareholder with 2,000,000 shares applied for 100,000 shares.
Assume available unsubscribed rights are 500,000 shares
Allocation would be on 50% of the application.
This will give 450,000 shares to shareholders who initially had only 100 shares but applied for higher additional rights as against 50,000 shares to the shareholder who owned higher number of shares but applied for lower number of additional rights.

Through this exercise your cost would. Become almost the cost of the rights issue. In case of LDEV it will be Rs 25/=


Yes that option is there but it all depends on how much of the extra rights you ask for gets allocated. And how much money you can tie up for a little while without a guranteed allocation ( presuming for retailers with no bank gurantees).
Buying rights from current market is a gurantee that you will atleast get that many. Right now a roight is rs 0.7 There is a trade off here in both cases I agree.

This is not a buy recommendation just for info.

31LDEV.R what a disappointment - Page 2 Empty Re: LDEV.R what a disappointment Tue May 10, 2011 2:39 pm

ssuni

ssuni
Manager - Equity Analytics
Manager - Equity Analytics

check this out..
http://www.slstock.com/stock/MainPage.jsp?1305018433230

is it like now?
is that will rise again?

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