LDEV price hike is due to its rights issue of 15:1 at Rs25.
If we take LDEV price as 50, its theoretical ex right value will be 26.5
Now its price is 70 and that makes it rs27.8
TO happen all this, people have to buy 15 shares at 25, for each share that they hold.
if you hold 100 shares, you have to invest 37,500.
If you got 1000, its 375,000!
Once you invest that amount, your share amount will get multiply by16.
ex : if you had 1000 shares, you will have to pay 375,000 and you will end up having 16000 shares!
these 16000 shares will have a theoretical price of 27.8 each (using the current value of 70)
The questions comes then.. what are you going to do with this?
Now the illiquid share is no longer illiquid.. plenty of shares in the market..
if you can sell your shares at 27.8, you are break even
If you can sell higher value ... you get a profit!
If sell less than 27.8.... you make a loss...
So, before investing, you have to think at what price you can exit in the future..
Depends on that you can buy LDEV...
Im my view, LDEV could be sell around 30.
But, we have to do a huge investment to buy shares at 25... therefore now buying LDEV shares at 70 is too expensive for me.