Thanks Uchit Patel. Seems to be good opportunity in NTPC.
I have applied for this as per your recommendation. My broker Zerodha allowed me to bid for 2lakh Rupees though I don''''t have enough balance. It is mentioned to maintain the balance before the allocation of shares to avoid interest.
As I see you are very experienced in OFS.... Can you please advise how many days do I have to arrange for this 2 lacs in demat ????. Also comment if you foresee any risk in this kind of transaction.
considering you get it at 160 and the price will be down to 163 seeing the past trends..just 3 rs profit per share. now do the calculations. to gain atleast 1000 rs in total you have to buy shares worth 53000.
If someone is borrowing that much money for such meager gains I don''t think that that is a wise decision.
NTPC OFS Hello sir, My amount debited @169.5 per share from sbi. Will I get refund for rest amount as per retail discount applicable?Is that possible I have been alloted @ 169.5 per share
Arbitrage opportunity for retail lost : Shorted SEP f&o 4000qty @ 168 i have applied ntpc OFS through 4 family accounts=4000 shares Allotted 4000qty@ 160
Now squaring off both position at same price and getting (8 difference * 4000=32000 profit) in just 4 days. Note : i could have informed this yesterday. but first time doing this. wanted to tell after success.
451.1. PSR| Link| Bookmark|
August 31, 2017 8:11:12 AM
IPO Guru (1200+ Posts, 700+ Likes)
These type of transactions are always subject to IFs and BUTs. What if
If you have not allotted all the shares applied for due to over subscription If issue price is fixed at higher rate due to more demand. If the price of the script gone up after selling in futures.
@PSR . you are correct. took risk this time because of OFS issue size. i agree , it is IFs and BUTs. but calculated risk occasionally wont harm in arbitrage trading.
Next arbitrage opportunity in wipro. buy@ CMP 295, sell it on buyback @ 320
Key risks : 1. Entitlement ratio should be more than 70% 2. Buyback process is 2 months. geo political tensions might drag the WIPRO shares (which already increased in the recent past) to very lowers prices.this affects the unsold shares from buyback