Yes. Minda ind RD was 4 Dec 19. So treat Harita as Minda ind only which is one of the best auto ancillary play in India. Workaholic ethical promoters who have created huge wealth due to their focus on execution n profitable growth. Best part is one can buy Minda ind 10-15% cheaper if one buys Minda ind now.
Harita wud also gain entry in many new auto cos in India where so far it was restricted due to its parent TVS Ind. Further export thru it’s subsidiary Fehrerr wud also get a fillip tks to Minda ind reach worldover n focus on auto ancillary
Swap is 100:152.Harita NCD @400, implied value of HSL stock.And thus swap value of Minda approx 265.Two possibility closer to announcement of date
1.Harita closer to Rs 400 /+
2.Minda correct closer to swap price.
In view of these possibility,what is best option?Looking fwd to advice from knowledgable colleques
Disc-Invested at Harita at very higher level, suffering loss.
if any one holding eg 152 shares of minda @ todays rate if one sells 152@360 =54720
and if one buys 100 sharesof harita @45100 (where he will get 152 shares of minda) so net arbitrage will be 9620 gain. and shares remains as it is .
Hello,
So for someone who doesn’t own Harita or Minda and wants to participate in the arbitrage, the best course according to you is buying Harita, is that correct.
Thanks
if one buy harita he has two option , 1 he opts for minda shares , 2 he opts for preference shares valued at 480. they will be given choice in advance what they want. . so if minda price goes down before excersising this option he can opt for preference shares.
disc. had entered harita at lower level and holding.
Can someone explain the concept of preferential shares in detail please?. Below is the statement i found in the press release of HSSL-MIL merger
“4 fully paid up Non-Convertible Redeemable Preference Share(s) of INR 100 each at a premium of INR 21.25 per Non-Convertible Redeemable Preference Share of MIL for every fully paid equity share(s) of INR 10/-(Rupees ten) held in HSSL”
The consolidated net sales in Q4FY20 stood at Rs1,338.97cr, which declined by 9.92% yoy from Rs1,486.46cr in Q4FY19.
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The consolidated net profit in Q4FY20 came in at Rs12.84cr that declined by 84.85%, as compared to Q4FY19, when it reported Rs84.78cr.
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The Board of Minda Industries at its meeting held on 29 June 2020 has approved the offer, issue and allotment of non convertible debentures on private placement basis aggregating up to Rs 300 crore. The Board also approved rights issue of equity shares of the company upto an aggregate value not exceeding Rs 250 crore.
