Hi Guys ,,,, some very dissapointing and heartbreaking news came in the evening ,,,, IFCI has rejected the offer made by Sterlite - MS and has called off the process of stake sale ,,, the Company is no longer interested in selling the 26 % stake and has ruled out any possibilities of a rebid.
The most dissapointing aspect is that after there being clear announcements that the deal would be clinched by today evening and the price fixed at ard 107 - 110 :: there was a complete U TURN from IFCI and this will definitely not go down well with the investor community.
This entire process raises quetion marks about the credibility of the company and the parties involved as they had built huge expectations around this event and the stock has risen 10 times in the last 8 months from 8 -10 levels to 115 levels ,,,,,
The most horrifying aspect of this is that IFCI has an open interest position of more than 9 crore shares in the futures market as per todays closing ,,,, indications from the grey market suggest that there are people ready to sell this stock at RS 75 but there are no buyers ,,,, optimistically assuming that IFCI opens in a best case scenario at around 70 -75 tomm ,it would result in a loss of RS 30 on a lot size of 7875 shares ,,, that comes to more than Rs 200000 per contract for people who are on the long side in futures on this stock
In addition to this many retail investors who felt that the strategic investor would come in at 107 -110 had bought this stock in cash market hoping for good returns on their investment in months to come ,,, they would have pretty much lost 40 -50 % of their capital by tomm evening ,,,,
I am not writing this because I am an investor in IFCI ,,, I used to hold IFCI but I had exited at RS 50 ,,,, The reason Im writing this is that there has to be something done to stop these malpractices and investors have to be more cautious and aware about the facts ,,,, first it was RPL which shot up to 295 and then down to 190 , later it was revealed that the promoters had sold 4 % of the equity ,,,, SEBI was said to be doing an inquiry and with time the issue has been suppressed because there are very big parties involved ,,, similar was the case with essar steel and so on ,,,,,
People have to be aware of the facts of each case and then take a fundamental call , not to get carried away with stary targets and keep booking profits at every level ,,,, In this case though the responsibility has to fall squarely on the parties involved in the entire process ,,,,, they have made a mockery of the public and the entire system ,,,, tommorow there will be lots of people who would have lost lakhs of rupees and their only fault would be that they trusted the statements released in the morning which said that the deal would be done by evening and the price had been fixed ,,,,
I hope peole read this article ,, I hope people understand that even though greed will always be a driver for all decisions in this market but every person has to assess his own risk taking capabilities and accordingly take a call ,,,, one shouldnt risk his peace of mind and his families safety just to make a quick buck .
Please post your replies and your opinions about this entire sham ,,, If you feel this article made a small difference in any which way then please post a small reply ,,, thnx
The most dissapointing aspect is that after there being clear announcements that the deal would be clinched by today evening and the price fixed at ard 107 - 110 :: there was a complete U TURN from IFCI and this will definitely not go down well with the investor community.
This entire process raises quetion marks about the credibility of the company and the parties involved as they had built huge expectations around this event and the stock has risen 10 times in the last 8 months from 8 -10 levels to 115 levels ,,,,,
The most horrifying aspect of this is that IFCI has an open interest position of more than 9 crore shares in the futures market as per todays closing ,,,, indications from the grey market suggest that there are people ready to sell this stock at RS 75 but there are no buyers ,,,, optimistically assuming that IFCI opens in a best case scenario at around 70 -75 tomm ,it would result in a loss of RS 30 on a lot size of 7875 shares ,,, that comes to more than Rs 200000 per contract for people who are on the long side in futures on this stock
In addition to this many retail investors who felt that the strategic investor would come in at 107 -110 had bought this stock in cash market hoping for good returns on their investment in months to come ,,, they would have pretty much lost 40 -50 % of their capital by tomm evening ,,,,
I am not writing this because I am an investor in IFCI ,,, I used to hold IFCI but I had exited at RS 50 ,,,, The reason Im writing this is that there has to be something done to stop these malpractices and investors have to be more cautious and aware about the facts ,,,, first it was RPL which shot up to 295 and then down to 190 , later it was revealed that the promoters had sold 4 % of the equity ,,,, SEBI was said to be doing an inquiry and with time the issue has been suppressed because there are very big parties involved ,,, similar was the case with essar steel and so on ,,,,,
People have to be aware of the facts of each case and then take a fundamental call , not to get carried away with stary targets and keep booking profits at every level ,,,, In this case though the responsibility has to fall squarely on the parties involved in the entire process ,,,,, they have made a mockery of the public and the entire system ,,,, tommorow there will be lots of people who would have lost lakhs of rupees and their only fault would be that they trusted the statements released in the morning which said that the deal would be done by evening and the price had been fixed ,,,,
I hope peole read this article ,, I hope people understand that even though greed will always be a driver for all decisions in this market but every person has to assess his own risk taking capabilities and accordingly take a call ,,,, one shouldnt risk his peace of mind and his families safety just to make a quick buck .
Please post your replies and your opinions about this entire sham ,,, If you feel this article made a small difference in any which way then please post a small reply ,,, thnx
