Feedback Message Board

The current RE price is about 205, more than the intrinsic value (681-535 = 146) by 40%. The actual share price would be 205+535 = 740 if someone buys RE and apply through ASBA. I don't see any sense.
People with RE should sell them directly.

People are less likely to buy RE even if price comes down to 160 also. Then also it will cost them about 695. Promoters will surely subscribe the issue, due to which RE will become shares in a month. The share price is likely to fall due to dilution.

Nikk, what you wrote makes sense.. you are very right here in your analysis

@Nikk, You don't have to pay complete 740Rs (205+535) now.
For now you will have to pay 338.75 Rs (205 + 133.75 (25% of rights issue price)) If you are interested in RE and remaining amount 401.25 Rs (75% of rights issue price) must be paid based on calls by the Company.
It works like pay down payment and pay EMIs like any other loans.
You can pay the down payment of 338.75 Rs and remaining amount 401.25 Rs in 2 installments.
So people with less fund can benefit.