HI GUYS,
One should always look at the value of its rights before thinking to renouncing it - here I have explained how to determine your value of rights -
NOW TATA POWER announced -
7 new sh for every 50 shares held.
Market Value of Each share (CMP) - 79.40
New share priced at (Face value + premium) - Rs.60
SO,
Market Value of 50 old shares = Rs.3970.00
+
Price of New 7 shares = Rs.420
TOTAL PRICE FOR 57 shares = Rs. 4,390
AVERAGE PRICE OF 1 Sh comes to Rs. 77.01
Therefore,
VALUE OF YOUR RIGHT = MARKET VALUE - AVG PRICE
= 79.40 - 77.01
VALUE OF YOUR RIGHT = 2.38.
Now this will keep on changing as and when the closure date of rights comes nearer..
GUYS DO have your home work done before taking any decision ..
BHAVIKK SHAH's BLOG
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It has been our experience that in the time period before the Rights opening and during the subscription period the difference between the Market Price and Rights' rate narrows in a big way.
ReplyDeletePost Rights Share Value tends to rise.
Example : We must have been among the very few small shareholders who applied for Mukand Rights @ Rs.21 ( Market rate then same)
Now , we do not regret it.