Has anybody received the tv18 rights issue shares in their demat account ? Though applied before time and the money has been deducted from my account, the shares have not been credited so far. Any one who has applied and has some answer please respond
Hello friends,
As of now the share price is Rs 80/- approx. What is the benefit of taking right issue @ Rs84/- why not directly purchase the same share @ rs 80/-? Or is there any other hidden profit for going ahead with rights issue?. Krrish
There are two reasons for subscribing to the rights issue :-
1. TV18 is not demanding the entire Rights Issue money in one go, but it will collect the money in 3 installments within 18 months. So don`t look at just the current marketprice. Think ahead and include your cost of carry in case you buy from the market today.
2. This is more of a subjective thought. When you subscribe to the rights issue, you give the money directly to the company which helps it in its operations (eg. in this case the company will retire debt) - this increases EPS, improves the sustainability and gives you a chance in the future, therfore, for taking advantage of the resultant price appreciation. Imagine if the Rights Issue fails because nobody subscribes, then the share price may tumble even further and you will make a loss from the current market price as well.
So every Rights Issue is also, philosophically speaking, a Duty Issue for the existing shareholders :)
Is it advisable to averaging the TV18 shares? I have 200 @ Rs 113/- Can I go for present rate i.e @ 78-79 and do the averaging. Will it be a beneficial move for the future???? Krrish
| NIFTY 
