CCS Right issue and Split

cmnet123 · 1 CCS Right issue and Split Sun Jul 17, 2011 10:53 am

cmnet123

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CEYLON COLD STORES PLC
Company ID: - CCS
Proportion: - One (01) new ordinary share for every ten (10) shares held
Issue Price: - Rs.300.00/-
Qty Offered: - 2,160,000
General Meeting & Provisional Allotment: - 30.June.2011
XR:- 01-July-2011
Dispatch of Provisional Letter of Allotment: - 07.July.2011
Rights Trading Commences on:- 13.July.2011
Renunciation:- 21.July.2011
Last Date of Acceptance & Payment:- 22.July.2011

What would be the price after right issue and after 1: 4 split? What is the meaning of "Renunciation" as given above?

Fresher · 2 Re: CCS Right issue and Split Sun Jul 17, 2011 2:02 pm

Fresher

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now it's XR so the price now is what you are looking for. (this is old news)
i believe the last traded price was 400/-

date of renunciation is the last day to trade the rights lodged in CDS

sanjaya351 · 3 Re: CCS Right issue and Split Sun Jul 17, 2011 2:19 pm

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Now rights are over .. but split is stillvalid ..if we buy 100 will have 400 after the split and price we have to spend would be 100 ..

You can do one thing more you can buy rights at 65 levels and then we pay only 365 per sahre -- even rights are entitele for the spilit ..

correct me if am wrong

DK · 4 Re: CCS Right issue and Split Sun Jul 17, 2011 5:36 pm

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Sanjaya
Yes, you could buy the rights at 65, but you'd have to be very lucky to buy it at 65. The real price of the right is above 100 (It is XR now and the share is trading above 400). Note that the share has been some what illiquid.

cmnet123 · 5 Re: CCS Right issue and Split Sun Jul 17, 2011 7:04 pm

cmnet123

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DK wrote:Sanjaya
Yes, you could buy the rights at 65, but you'd have to be very lucky to buy it at 65. The real price of the right is above 100 (It is XR now and the share is trading above 400). Note that the share has been some what illiquid.

Isn't this share is much over valued? But i feel people have more interest in buying this share.Just a thought make me correct if i'm wrong. what is the value of a share according to the fundamentals?

DK · 6 Re: CCS Right issue and Split Sun Jul 17, 2011 9:11 pm

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cmnet123 wrote:
Isn't this share is much over valued? But i feel people have more interest in buying this share.Just a thought make me correct if i'm wrong. what is the value of a share according to the fundamentals?

You could be right, to be honest I havent followed this share much and the number I produced was based on pure 'numbers' (sorry I should've added a disclaimer to the previous note).

Just had a quick look, note that I havent really gone through what contributed to each;
NAVPS: 205.96 (as of 31st Mar 2011)
EPS: 9.24 (for the year ended 31st Mar 2011)
Dividend per share: 4.00 (for the year ended 31st Mar 2011)

They've been issuing a dividend of 4.00 per share from 2009 on wards. The dividend it self might be attractive to the lot who purchased shares around 2009 Jan (when the share price was below 100).

Please go through their Annual Report and make your own call before making a buy/sell decision.