WANT TO BUY SHARES OF UNITED COMMODITY EXCHANGE .PLS GIVE YR PRICE AND QNTY OFFER.
SANDIP GINODIA
ABHISHEK SECURITIES, KOLKATAsandipginodia@vsnl.net
9830271248
http://www.abhisheksecurities.com/unlisted.htm
SANDIP GINODIA
ABHISHEK SECURITIES, KOLKATA
9830271248
http://www.abhisheksecurities.com/unlisted.htm
6 comments:
Yogesh Radke, Senior Manager (Institutional Equities - Quantitative Research Desk) at Edelweiss Capital, in an interview with CNBC-TV18’s Udayan and Mitali Mukherjee, gave his strategy on investing in various scenarios.
Below is the verbatim transcript of the interview. Also watch the accompanying video.
Q: Where do you see AP Paper stabilising after a string of circuits? How would you advice investors to approach it?
A: The offer has been given at a much higher price. The stock would be at circuit levels till it reaches around 10-15% below the offer price. The valuations are very expensive at the offer price. I would recommend people to exit the stock at around 10-20% below the offer price, where the stock would stabilise till the open offer.
Q: It has been hitting multiple circuits ever since the deal was announced. What kind of acceptance ratio do you see happening on this particular issue?
A: That is something which has to be seen.
Q: What about Cairn? The market has its eye on that. The open offer should likely happen next week. How would you approach that?
A: The offer price is below the current market price. It is a crude play which is happening into the Cairn. The regulatory approvals would take sometime. The offer is expected to come in next few days. We have seen the current market price to cross the offer price. There is no play left in the open offer at present.
Q: Atlas Copco has accepted Rs 2750 as the exit price. What is the right way for the investors to be approaching this one at the exit price?
A: The shares have now accepted at the Rs 2750 price. So now the left grade is only to buy from the market and tender into the window period, which will be starting. The delisting will happen in the attractive levels. The marginal gain will be about 2-3% extra and be captured by doing an off- market tendering of shares to the company.
Q: We have the Patni open offer coming in as well. It is not a huge amount of arbitrage but what would you advice investors in this one?
A: The acceptance level is highly dependent on the ADS shareholders and considering that spread left between the share market price and the offer price, the ADS shareholder may not be tendering into the offer. So, the acceptance would be around the say 65% odd or may be much higher also.
It is recommended that even the stock can be held after the open offer also. We believe that the stock will not sharply correct after the open offer. So even for long-term investment, the stock looks good and even for the offer purpose that can be bought and tendered into the open offer.
Part II
Q: What kind of response has the Siemens offer been getting and how would you approach that?
A: Siemens open offer is again function of how much the major shareholders tender and how much the public shareholders are going to tender into the offer, like surely LIC is one of the major holder of Siemens shares and holding 13% odd. If they partially tender a part of shares get tendered by them, then the acceptance level will go high.
Even on the retail front, the retailers hold around 13%. Historically, we have seen that retailers don’t participate into offers looking at the number of shareholders which are there. That increases the acceptance level.
In Siemens we are expecting nearly about say 65% odd acceptance and it can go much higher till 90%. There is much of interest in the stock, so there are funds who may not tender completely into the offer and would like to hold on stock post open offer also.
So even there I would not expect much of correction in the stock post open offer. The stock may sustain and also rally towards the open offer prices.
Q: Smaller delisting is Binani Cement. Over there as well there is still a slim margin going between the delisting price and where it is trading at. How would you play that?
A: Whenever the stock gets delisted, the delisting price gets accepted by the company. The stock trades on the exchange by a percentage difference between the accepted price and the current market price around 1-2% odd. So, the people who would be interested in having in risk-free rate of return.
In the equity markets also they can buy the stock and tender into the window period. There are other delisted stocks, which can be played around, so Binani is one of them as Rs 90 is the exit price for the stock. So buy from the market and tender into the window period.
Q: Any idea what is going on with the Nirma offer, which is been kept in abeyance?
A: In Nirma, there was some amount of problem created and the window period was kept on hold. But now most of the things would get sorted and again the same way as the price has been accepted at Rs 260, one can buy the stock, whichever is left with you, because the stock has been delisted. So whichever stock you have, you need to tender into the window period to get exited, because that is a non-listed stock.
I appreciate your post, thanks for sharing the post, i would like to hear more about this in future.
Thanks for sharing.
Commodity Market
Great informational article. I learned quite a bit . I will be using the things I learned from your article.
Thank You
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