Usually it doesn’t happen but in rare circumstances it is done. Example in Industrial Loans when DOCC and EMI scheduled but there are no operational cash flows. This is a rare occurrence.
Hope it is clear. All the best.
Can anybody advise how to download OEM wise registration data from the Vaahan portal? I have seen some articles / posts suggesting they accessed OEM data from Vaahan but haven’t been able to figure out how.
Edit : Never mind, got it thanks to @sahil_vi - VAHAN SEWA| DASHBOARD
Single line answer would be lack of sales growing. For HDFC life it would be high pe multiple. Every stock has a story. Please read respective thread to understand.
All the Best.
Is there any better way to reach out to company for any query so I could understand company better? I was trying to reach out to following company but no luck in getting response. Appreciate your input.
Knowledge Marine & Engineering Works Ltd – email@example.com, firstname.lastname@example.org
Kotyark Industries Ltd – email@example.com, “firstname.lastname@example.org” <email@example.com>
Note: I have collected email from respective company Annual letter.
Knowledge - See the investor presentation - names, email ids (different than above) and phone numbers are given. Call them up if emails are not responded.
Kotyark - This company is in SME segment, registered office seems to be a residential address. See the website, call center number is given. Call them up, if you are living in the same city, try to visit, else forget it.
Can anyone help with performance of liquid funds on rising interest rates and tighter liquidity scenarios? My wholly unsubstantiated feeling is that, since most of them are supposed to do 90/120/180 day lending, they stand to benefit from higher rates as well money tightening scenarios.
Is that how it is, or I’ve got it inverted i.e. they perform badly in increasing rate scenarios?
No, all funds holding shorter duration bonds will benefit, as new bonds are issued at higher interest rates, and longer duration bonds will give negative returns for some time.
Here is a screenshot from Value Research Online https://www.valueresearchonline.com/funds/
Here is a detailed view https://www.valueresearchonline.com/funds/fund-category/?prim_cat=debt
The longer the duration, the longer the interest rate effect.
Due to an inverse relationship between the Interest rate & bond’s price, a rise in the Interest rate leads to a fall in the Bond’s Price.
Basic relationship -
However, the price fall for a short-term bond is less than the price fall for a long-term bond when interest rates rise.
For instance, comparison between 1-yr and 10-yr bond -
Although both types of bonds lose value on an absolute basis, the short-term bond performs better than a long-term bond as it loses less.
Thank you but what do Liquid Funds do? And can I assume that they’d make a little more, now that rates are more?
Hi, please suggest some books to understand different industries or helpful in industry analysis…
Liquid Funds invest in short tenor debt such as CDs, CPs, short tenured G-Secs, T-Bills and call market. You are right, they would earn more in a rising rate scenario since fresh inflows and maturing instruments will get reinvested at higher rates than before.
Michael Porter’s Competitive Strategy is a good book to understand how to analyze industries.
In general, what do you think about the bearing industry? Is it a good investment for the long term based on current views?
Anybody know the procedure to get shares back from IEPF ?
Apparently the site is not that helpful.
Does anyone know how a Rights Issue works? I mean, I know the facts around how it works. But if you’ve ever subscribed to a Rights Issue, I want to understand how it works real-time; more specifically the details around:
- How to buy additional Rights that are usually traded in the market
- How are the additional Rights distributed if the Promoter also intends to participate in the issue
- The regular rights that are owed to you - are they automatically credited to your Demat?
- Assuming you have a bunch of Rights, how does the conversion to actual Shares work?
- How does the Share trade after the Rights Issue (I know how it’s Priced post the issue, but what is the behaviour usually after it)
- Are there any Arbitrage opportunities in a Right Issues?
I know it’s a lot of question. But any explanation here would help. Thank you.
I participated in Minda Industries Right issue in 2020. I also had a lot of questions at that time on process,so I mailed them. They explained everything over mail communication. Attaching some screenshots. Hope it will help.
I have subscribed to some in the recent past.
Any Rights Issue, from a certain time after approval date, till some time before record date for allotment, an instrument called “Rights Entitlement” are created with its own ISIN, that is available for trading, and can be purchased. In some cases trading is active.
The amount of “Rights Entitlement” created is the total amount of shares available for Rights Issue. The trades are all delivery based and hence who ever owns the Rights Entitlement as of Record date can subscribe to the Rights Issue
Yes, both the Rights Entitlement and the shares upon subscription to the Right Issue are credited to the demat. You get mails from the relevant Depository with details like this
They will be applied for listing by the company and once they are, they are admitted for trading…typical not more than a month, iirc.
There will be theoretical price to the rights based on the closing price, cum-Rights, on Record date. In my observation/experience, the ex-Rights is higher than its theoretical price; but I have also seen it go lower in some cases. While it depends on many qualitative factors, the purpose of Rights plays a big role (and to a good degree independent of other factors). So if it’s for specific purposes that are seen to increase value, the price may open at a higher price than theoretical price. However if it is because the Promoters want to save a failing business and seeking Rights, it opens lower…but these are very anecdotal and I may be just trying to put some reasoning where none may exist.
You can create a tax loss to reduce your tax burden, by buying entitlements and selling your pre-rights holding soon after the record date when the share price falls (Rights Issue are always priced lower than market price). And you may work to have the same holding as earlier thanks to shares you get via entitlement. The minor flip side is to hold it for a year etc (you likely know the works)
If (a) there is a large gap between the share price when Rights is priced and the Rights Issue, (b) Rights Issue is materially big, and (c) say you think the share price is quoting far lower than intrinsic value at that time, then there is merit in evaluating purchase of more entitlements as you lower your average cost, with the assumptions that odds will be high that the ex-Rights will be higher than the theoretical ex-Rights.
An instructive live example is the Rights Issue of Sundaram Finance Holdings Ltd, which priced its Rights at 50, ratio of 23 offered for every 49 held. The share price was quoting at around mid 70s.
You may learn more here - SFHL Link Section VII, page 113 of the LoF gives the terms and should be able to answer all your questions.
Finally, for any application related doubts, contact the CS of the company. They are tasked to see Rights are fully taken up and will go the extra mile to help
I recent read some thread in VP or somewhere else, which I could not locate, which said tax loss can’t be harvested for “buyback” or “bonus shares” if the shares are bought within 3 months of corporate action. Even if the shares are bought earlier than that, there’s a limit of how much you can harvest tax loss on these stocks.
It may be a good idea to locate it to avoid a speculative discussion!
Shares issued under Rights Issue are none of the above. AFAIK there is a new rule to avoid creating of tax losses via Bonus Stripping. But as always I am no tax advisor.
Could you provide more info around
- Reason why you rated Tata Chem higher over Deepak Nitrite
- What was the goal in mind?
- Why do you now feel Deepak Nitrite is better?
More info would help to possibly help with analysis.