Respected Seniors,
I am small investor and holding a small number of City Union bank CUB.
CUB has come with rights issue which will be offered for 20rs.CMP of CUB is 55 .
Now my question is:
In case of Bonus shares : Lets assume price of equity is 100 and if it declares bons of 1:1, after bonus market price gets adjusted accordingly (which will be around 50).
Or if bonus is in some different ratio, market price of that scrip gets adjusted according to ratio.
1.DO similar thing happen in case of Rights issue also?
2.On 22 nov, there was big gap down opening from 61 to 51 coz of this Rights issue news. Can this move was adjusting price according to rights issue ?( just like it happens with bonus issue)
3. do Size of rights issue have any impact on price ( once the rights shares are allocated) ? If yes, will anybody look in details for CUB ?
4.Shall i opt and bid for extra shares ( other than normal allocated) ?
pls help
I am small investor and holding a small number of City Union bank CUB.
CUB has come with rights issue which will be offered for 20rs.CMP of CUB is 55 .
Now my question is:
In case of Bonus shares : Lets assume price of equity is 100 and if it declares bons of 1:1, after bonus market price gets adjusted accordingly (which will be around 50).
Or if bonus is in some different ratio, market price of that scrip gets adjusted according to ratio.
1.DO similar thing happen in case of Rights issue also?
2.On 22 nov, there was big gap down opening from 61 to 51 coz of this Rights issue news. Can this move was adjusting price according to rights issue ?( just like it happens with bonus issue)
3. do Size of rights issue have any impact on price ( once the rights shares are allocated) ? If yes, will anybody look in details for CUB ?
4.Shall i opt and bid for extra shares ( other than normal allocated) ?
pls help