Rights Issue - CRL

Gaja · 1 Rights Issue - CRL Fri Jun 24, 2011 6:07 pm

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http://www.cse.lk/cmt/upload_cse_announcements/9671308916678_.pdf

Monster · 2 Re: Rights Issue - CRL Fri Jun 24, 2011 6:11 pm

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Gaja wrote:http://www.cse.lk/cmt/upload_cse_announcements/9671308916678_.pdf

CRL announced a right issue of 2:5 @ 50/-. Not like old days, right issues has given negative impact to the share. Let' see how it's going to effect CRL. Closing price CRL is Rs 61/- today. Hence right issue is not attractive.

Further it's the second right issue within short period. They have announced a right issue of 1:3 @ 40/- in September 2010.

giniam · 3 Re: Rights Issue - CRL Fri Jun 24, 2011 6:49 pm

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IPO's and Right issues are milking the retailers dry !
I feel retailers are selling short to participate without realising that they are being "Double Whamied', ie loosing both ways.

Hiru · 4 Re: Rights Issue - CRL Fri Jun 24, 2011 7:51 pm

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If we use the current price as the last cum right price, then the price after right issue is around 59. As the prices tend to go down further, cum-right price will come down towards 50 or below that as the ex-right date reaches. If the current market situation continues, few weeks after the listing of right shares we would be able to buy from the market at a considerably lower price.

We know that almost all the recent right issues were not successful in attracting existing small scale investors as there was no real value to right holders, but all issues were subscribed by risk taking entities which have been funded by share holders including small scale investors, without their consent.

CRL will also expect the same and shareholding of the small investors will be diluted.

Deliberate actions of manipulators will result in the reverse situation!

Last edited by Hiru on Fri Jun 24, 2011 8:18 pm; edited 1 time in total

early · 5 Re: Rights Issue - CRL Fri Jun 24, 2011 8:01 pm

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Agree. Even reasonably priced rights issues like Seylan Bank (x) have not given the investors a return.Rights was issued at 35 but now trading at 34. Cant understand this because it used to trade over Rs.50/- not very long ago.

wallstreet · 6 Re: Rights Issue - CRL Sat Jun 25, 2011 5:35 pm

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If there is a right issue , you better to sell off shares. Best example is sampath bank. Those companies think retailers grow money trees. we should harvest this money when they ask for right issue. But when concern about dividend. so sad reply from them.

mark · 7 Re: Rights Issue - CRL Sat Jun 25, 2011 5:53 pm

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Gaja wrote:http://www.cse.lk/cmt/upload_cse_announcements/9671308916678_.pdf

oh......right issues in such rainy days Evil or Very Mad

Monster · 8 Re: Rights Issue - CRL Sat Jun 25, 2011 6:00 pm

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wallstreet wrote:If there is a right issue , you better to sell off shares. Best example is sampath bank. Those companies think retailers grow money trees. we should harvest this money when they ask for right issue. But when concern about dividend. so sad reply from them.

Why you have taken SAMP in to this? They didn't issue any right issue.

wallstreet · 9 Re: Rights Issue - CRL Sat Jun 25, 2011 9:02 pm

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Monster wrote:

wallstreet wrote:If there is a right issue , you better to sell off shares. Best example is sampath bank. Those companies think retailers grow money trees. we should harvest this money when they ask for right issue. But when concern about dividend. so sad reply from them.

Why you have taken SAMP in to this? They didn't issue any right issue.

oh sorry monster I made a mistake. I was referring seylan bank. not sampath bank. I hereby rectify mistake into seylan bank . not sampath bank.

thanks for showing the mistake.

econ · 10 Re: Rights Issue - CRL Sun Jun 26, 2011 4:00 pm

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typical softlogic tactics. taking debt and buy companies.
CRL had a right issue last year too.

Slstock · 11 Re: Rights Issue - CRL Sun Jun 26, 2011 4:48 pm

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econ wrote:typical softlogic tactics. taking debt and buy companies.
CRL had a right issue last year too.

Yes I was just about to say. They finished a right issues just 7 months ago ( nov 2010) . This is another one to milk the shareholders ( specially retailer) dry. Some companies are acting like leeches in this already troubled market. 1 time in a year is understandable. 2 times in 7 months! To be honest I would personally not entertain such companies until they get their act right to value their retailer shareholders. Surely they have other options to collect funds if they need without hassling small guys.

I only hope the SEYB situation doesn't happen for current CRL holders.

mark · 12 Re: Rights Issue - CRL Sun Jun 26, 2011 6:18 pm

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slstock wrote:

econ wrote:typical softlogic tactics. taking debt and buy companies.
CRL had a right issue last year too.

Yes I was just about to say. They finished a right issues just 7 months ago ( nov 2010) . This is another one to milk the shareholders ( specially retailer) dry. Some companies are acting like leeches in this already troubled market. 1 time in a year is understandable. 2 times in 7 months! To be honest I would personally not entertain such companies until they get their act right to value their retailer shareholders. Surely they have other options to collect funds if they need without hassling small guys.

I only hope the SEYB situation doesn't happen for current CRL holders.

well said,because of such steps our market facing a liquidity issues....also the right price is not much attractive.dont know where we going to pump money:evil: ,
even though there is many more attractive share currently in the market,wondering who going to take the ball. Question