REI Agro did to my backside.

[dialme4chat]

Or I did to myself :rofl:

Anyways, I'd appreciate any help from you people.

I have invested about 80,000 in Rei Agro at an average of 48.

Now it's around 38.

I thought I did enough research. the company was a front-runner in its field. had good sales and strategies. Most of all, the graph had a nice zig-zag of recovery.

What should I do? Do you think I can recover if I wait for a few weeks?

Thanks in advance guys

Prit

 

[Tusker]

Did you guys receive Rights share already? I did not see any share addition on my demat balance. Will they credit the additional shares to my demat account or they will send some sort of communications to home by post? Any idea guys?

 

[bunny]

Did you guys receive Rights share already? I did not see any share addition on my demat balance. Will they credit the additional shares to my demat account or they will send some sort of communications to home by post? Any idea guys?

Its a right issue, not a split or bonus such that you will get them. You have to subscribe or pay money for the shares such that the price per share is less than market price.

 

[asnavale]

Or I did to myself :rofl:

Anyways, I'd appreciate any help from you people.

I have invested about 80,000 in Rei Agro at an average of 48.

Now it's around 38.

I thought I did enough research. the company was a front-runner in its field. had good sales and strategies. Most of all, the graph had a nice zig-zag of recovery.

What should I do? Do you think I can recover if I wait for a few weeks?

Thanks in advance guys

Prit

Hi Prit,

You bought 80,000 worth of shares @ 48 each. That means you have 1666 shares. Now you ill get 2 times these as rights @ 19.50 each. So if you subscribe to the rights fully you will pay 2 X 19.50 X 16666 = 64,974 and receive 3332 shares. You have already paid 80,000 and have 1666 shares. Therefore after rights shares are received you will have a total of 1666 + 3332 = 4998 shares. The total money paid for these will be 80,000 + 64974 = 1,44,974. The average price therefore will be Rs. 35 per share after rights. Assuming the price remains at 38 even after rights you have a profit of Rs 3 per share. If it falls below 35 then it is a loss.

-Anant