Udara Rangana wrote:Buy and wait one two months until announce the right issue dates. this will touch Rs 23 soon....................
please exercise CAUTION.
it will not work like you think because of the following reason;
1) already the share price in the market is 18/- ( less than the rights price )
2) proposed right issue price is at 20/-
3) ratio of rights is 1:1
considering those points the share capital will double that means the number of shares also will double.
that in turn make this share very much liquid there for more supply less demand, there for the price will only fall in my humble opinion.
only good thing is that they say they are going for this rights to repay the loan outstanding. this will in turn make this company interest expenses lesser in the coming year hence less overheads.
I would think as it is, this is a long term stock if this rights issue go ahead as planned.
(however may be LOLC might do a magic later by some announcement. we do not know at this point of time )
this is my view. I have sold my holdings as soon as I heard this news way back in September.
this is my own opinion only. please discuss with your friends