NTB - 2011 warrants converted to shares

cse.alpha · 1 NTB - 2011 warrants converted to shares Thu Mar 31, 2011 9:32 am

cse.alpha

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NTB - 2011 warrants converted to shares

21 mn new NTB shares have been created, and shares are lodged in CDS now.

Exercise price was Rs 35 - so there could be some short term selling pressure on NTB.

New share capital will boost NTB profits, but need to check for dilution impact on EPS due to greater number of shares.

UKboy · 2 Re: NTB - 2011 warrants converted to shares Fri Apr 01, 2011 1:43 am

UKboy

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cse.alpha wrote:NTB - 2011 warrants converted to shares

21 mn new NTB shares have been created, and shares are lodged in CDS now.

Exercise price was Rs 35 - so there could be some short term selling pressure on NTB.

New share capital will boost NTB profits, but need to check for dilution impact on EPS due to greater number of shares.

A very good point. + rep from me.

Kithsiri · 3 Re: NTB - 2011 warrants converted to shares Fri Apr 01, 2011 8:27 am

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Tell me in simple language what Doctor orders. Get out now or invest more ? Embarassed

Chinwi · 4 Re: NTB - 2011 warrants converted to shares Fri Apr 01, 2011 1:39 pm

Chinwi

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Number of warrants converted was 21 million compared 210 million shares . (approx)
That is mere 10% increase of shares. With the capital infusion of 735million from the new shares, business and EPS should increase in a very positive way.

Somehow, current market price is artificial , i.e. trading low @ 77/- may be due to selling of 35/- shares. . I think NTB become worth to trade over 125/- withing one year.

Quibit · 5 Re: NTB - 2011 warrants converted to shares Fri Apr 01, 2011 2:12 pm

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JKH and CFIN will have to sell down soon... to be in line with CB regulations of maximum 15% holdings!! Dilution via warrants insignificant! I am cautious!

Slstock · 6 Re: NTB - 2011 warrants converted to shares Fri Apr 01, 2011 2:53 pm

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I did a post on this in January/February if I remember right. Warrant issue was around 10%. Dilution will be minimal with infused capital. This was one of the more carefully thought out warrant issue in the recent past.

However as Quibit mentioned CF and JKH holdings need to be monitored. I do not think there is a urgent threat. They might consider disposing some when the market is at a stronger situation for their capital gain to be higher if they need to. NTB is trading a low prices now. Rememeber this once hit rs 110 in september. Even with Current financials this is worth around Rs 90 ( EPs5.4 x 16 as a fair value) . I doubt they will think about it even presently, It is in their best interest to wait until after July/Sept after Quarter 2 results and a more stronger market after complete credit clearance). I could be wrong.