PABC... Why so much selling pressure

Light of Hope · 1 PABC... Why so much selling pressure Thu Jan 19, 2012 11:26 am

Light of Hope

Vice President - Equity Analytics

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Even after declaring a one rupee divident (which is really good), there is lot of selling going on dragging the counter down. infact today it touched 23.5, which less 1.50 than the price it was at the time the divident was declared.

I have PABC with me and a bit worried about this pattern. I don't think they will go for a right issue, cause they don't need one to meet the capital. Any other reasons to worry?

monash · 2 Re: PABC... Why so much selling pressure Thu Jan 19, 2012 12:59 pm

monash

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Dividend has no effect on PABC for now mate.. Because XD date is on April 2nd, so long time to go.. if it moves on dividend it has to be mid march..

Since they need to have capital reserves of Rs.4 billion by 31 December 2013 in compliance to central bank. Their is a possibility that they may go for a rights issue to find necessary capital.. I think some party exiting because of this capital issue.. Better wait for their 4th quarter financials and take a decision..

Light of Hope · 3 Re: PABC... Why so much selling pressure Thu Jan 19, 2012 11:12 pm

Light of Hope

Vice President - Equity Analytics

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monash wrote:Dividend has no effect on PABC for now mate.. Because XD date is on April 2nd, so long time to go.. if it moves on dividend it has to be mid march..

Since they need to have capital reserves of Rs.4 billion by 31 December 2013 in compliance to central bank. Their is a possibility that they may go for a rights issue to find necessary capital.. I think some party exiting because of this capital issue.. Better wait for their 4th quarter financials and take a decision..

thanks monash. I think they will be able to meet that capital without a right issue.