South Indian bank is proposing a rights issue - 21st December is date called for meeting of board of directors to discuss rights issue to augment capital. This could result in significant dilution depending on the ratio declared and price at which rights will be offered . Also will bring down effective book value.
I believe they have no option as T1 CRAR is now around 11.13%( after Q2 FY17).
They are proposing the rights issue at 1:3 ratio for existing shareholders at Rs 14. Any idea how to subscribe for the rights issue?
They are yet to announce the record date . Once that is done they will send the form for applying for rights for share holders who held shares as of the record date.
does it have to form based or you can get it on your demat account . Also this too much dilution of equity not sure how it is going to help shareholder can some one explain
Since the rights issue is 1 share for every 3 shares dilution will be to the extent of 25%. Purpose behind rights issue is to shore up T1 CRAR which is at 11.1% end of last Q. This is not aimed at benefitting existing share holders as much as protecting them against dilution as long as you subscribe to the rights issue.
Shares will be allotted to your DMAT after payment for the same
Research report from Prabhudas Liladhar on SIB. Target - 25
http://www.moneycontrol.com/mccode/news/article/article_pdf.php?autono=8292441&num=0
Still believe SIB is a value buy. NPA issues have stabilised in the last 2 quarters. UDAY has certainly helped.
Growth is moderate and in the early-mid teens(However retail focused loans are increasing at much faster pace). Provisions will continue to be high for some more time(to increase their PCR) and thereby depressing the reported profits.
Triggers for stock price movement would be - Reduction in NPA numbers and restructured book and faster pace of growth (above 20%)
Views invited. Thanks.
Disc - Bought at 24 almost 2 years back. Added more at 17-18 about 8 months back. Continue to hold.
Short Summary of Q3 conference call:
we have also prepared few other summaries. Sharing here: https://goo.gl/5RTk0o
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SIB has fixed the record date for rights issue as 17th Feb 2017.
Anyone received the forms or know the process of the process to apply for the same?
This is just to identify the shareholder who are eligible for Right issue. Everything else will be after that.
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How will the shareholder apply for right issue? Will company send form by post or email?
Has anyone received the right issue forms?
Thanks
Gaurav Agarwal
Today I received the forms for the Rights Issue.
I would like to apply but I have never applied for a rights issue before. Can someone experienced please point out the things I should watch out for?
Thank you!
Chirag
I received the forms today.
By courier or over the email?
Physical forms via courier.
In case someone has not received the forms, nothing to worry. go to the url “http://www.linkintime.co.in/rightsissues/default.aspx” and provide the details DP/Client ID. Download the form.
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A quick question, it would be helpful if anyone can answer
Right now premium with right issue is approximately 40 %. Will the share price will go down accordingly once equity base will increase or it has already been taken care on record date. I saw 10 % blip on record date.
I suspect in any case there will be some downside pressure once everyone will receive right share and would want to book some profit. But my question is more on share price adjustment as per equity increase when will that happen or it has already happened?
Puneet
Market price in any information as soon as it receives it. Therefore information is already in the price. But you can always except some sale-off once the new shares are received.