I have received lot of queries regarding the open offer made by the existing promoters of Vimal oil and foods @ Rs.51/-. As per the prevailing law, promoters can hike their stake through creeping acquisition method upto 5% in each financial year .But in this case they have pumped an amount more than Rs.30 Cr by subscribing 60 lac equity shares at a price of Rs.50.16/- through preferential issue . This is way above the limit of 15%(upto open offer not applicable).Hence as per the rule ,it is a mandatory open offer. Since the market price is above open offer price ,chances are low to get shares in this offer till market price ruling above the open offer price . This means ,open offer @ Rs.51/- is not a reason to come down the share price to this level in any way.On the other side ,this development is really a positive one.Promoters are bringing huge money to the company itself is a sign of their confidence .This amount is expected to partly used for reducing debt and balance for further business development ,which is positive for the company in the long run
---------------------------------------------------------------------------
This is to clarify some doubts raised by some readers as comments and through e-mail.
Disclaimer: This Blog,its owner,creator & contributor is neither a Research Analyst nor an Investment Advisor and expressing opinion only as an Investor in Indian equities. He/She is not responsible for any loss arising out of any information, post or opinion appearing on this blog.Investors are advised to do own due diligence and/or consult financial consultant before acting on any such information. Author of this blog not providing any paid service and not sending bulk mails/SMS to anyone.
Wednesday, September 22, 2010
Subscribe to:
Post Comments
(
Atom
)
Sir,
ReplyDeleteYour view on BAG Film and Media? It is tarding at year low Price. Can i invest with 6 months timeframe
Thanks
For significant improvement in financials ,you may need to wait atleast two years.May get only a small bounce in share price from current level- in short term
ReplyDeleteThanks..for the quick response...sir.
ReplyDeletehello sir. i am following your blog for some time now. i must say that this is a finest blog in this genre.
ReplyDeletethank you so much for educating and directing all of us.
Thanks
ReplyDeletesir can i buy this stock
ReplyDelete