Special situation (demerger, rights issue, delisting) - checklist


Over the last one month i have worked on understanding special situation (risk arbritrage) investments in general and rights issue, delisting and demerger in particular. I think these are one of the best ways to earn MARKET NEUTRAL return. Ofcourse ‘Shit happens’ and special situation and if our analysis goes wrong downside can be huge & permanent loss of capital.

Please find below checklist which I have put together, which is mostly a compilation from Neeraj Marathe, Ashish Kila and Sanjay Bakshi blog. Please note that I do not have much practical experience in specialsituation investmentand the intention in putting up the checklist is to seek guidance from senior investors and learn together with other investors who like me have not yet participated in special situation investment.

Please suggest if no notice any errors or you think any importantadditional steps which you think I might have missed.

Here are some excellent resources to begin with

  1. Rights issue basics: http://neerajmarathe.blogspot.in/2012/04/rights-issues-get-it-right.html

  2. Playing delisting cases: http://neerajmarathe.blogspot.in/2011/04/playing-delisting-cases.html

  3. How to evaluate delisting cases. This is an excellent presentation by Ashish Kila, CIO of perfect research, where he has explained the entire delisting process and the past cases in which delisting failed. http://goo.gl/Oyf2y

  4. Can you teach risk arbitrage(Sanjay Bakshi) - http://fundooprofessor.wordpress.com/2012/10/20/teach/

Special-situation-checklist.xlsx (10.1 KB)



Is there a stock advisory service in India focussed on special situations.


I guess Kotak Mahindra has a special situation themed mutual fund.

YES,Katalyst wealth.com

1 Like

Can any senior and experianced members put some light on the new IPO coming from GVK power for airport vertical. What will be its effect on the retail investors of GVK power

Hi Anil,

Good post. Thank you for taking the initiative and sharing the details.

These special situations (also called value catalysts) are really worth learning as they are capable of both creating and destroying wealth for the shareholders in a short period of time.

Besides, few other similar situations (catalysts) on which the investors should also keep an eagle eye are - Earning release, Stock buybacks (Repurchases), Significant dividend announcement, Product launches, Stock splits, Bonus, Spinoffs, Liquidation, Lawsuits & investigations and Addition to index.
( Read more here – 11 Must-Know Catalysts That Can Move The Share Price.).

Thanks again for the post. Cheers

P.S. The checklist spreadsheet is not opening (but the resources links are working fine). Please rectify it.

1 Like

Hi…in valuepickr is there a post thread for special situations where opportunities are posted and discussed? if yes, pls. share link

There is good special situation opportunity available with open offer of fortis and fortis malar by ihh group. Current market price of fortis share rs 147 open offer price rs 170. Potential gain about 15 percent . Time frame within 90 days. Considering current volatility and high valuation in various stocks it may be good opportunity for small gain. As I see it risk is very less in this situation except regularity approvals from CCI and sebi as both party is willing and no much choice. IHH group is leading hospital chain in Asia with market cap of around 10 billion us dollar and listed in Singapore and Malaysia stock exchange. They have already running hospital with around 1000 beds in South India so very well versed with healthcare business in India. Also likely to improve corporate governance issue in fortis and current valuation of fortis considering future potential of healthcare industry is also decent so no much downside risk from current level.
Fortis open offer

Disc: Yesterday took some position after announcement


What happens to fortis open offer in view of supreme court order staying fortis controlling stake sale to ihh.

Disc: invested in fortis

Collated special situation case studies in my blog and thought to share here


does any one have any views on this upcoming opportunity?

This is awesome.

Are there any other resources available to learn more about it?

Apart from it, you can read for special situation section in book ‘Joys Of Compunding’ by Gautam Baid. There is interesting information there over and above what I collated in the post.

Let’s keep learning together.

Amit Saxena

1 Like

Hi Anil

Can you please share the spreadsheet again. I am unable to open the spreadsheet.

Piramal enterprise demerger is happening, put eye on it

1 Like

Any opportunity in Escort open offer ?

Open offer price - 2000 Current market price 1850 / Open offer date 10-Jan-21.

As Kubota is taking over the board with 55% stake in the company, Escort is also a re-rating candidate as is going to be a MNC company.

Murari Shah


Has any one tracking delisting proposal of Jindal Photo (Book Value 1690 CMP 279) by Soyuz
Trading Company Limited, along with other Promoters? As per latest share holding pattern they have Nil holding…

1 Like

Has any one traking TCS Buyback opportunity ?

Trying to calculate AR in the retail category.

hi, any idea abt taxation? it’s an offline offer, no stt, so no equity lt/st cg, so will it be taxed as per debt or slab?



HDFC board approves merger of co with and into HDFC Bank https://twitter.com/CNBCTV18Live/status/1510822520064462852/photo/1