Friday, October 2, 2009

Long hiatus

Back after a long hiatus to writing the blog. Part dictated by work part by a vacation in Kerala. I have been there before but it always amazes me the diversity in beauty that India has from the rain shadowed vast expanse of Leh to the thick tropical kind of greenery of Kerala.


IL& FS Investmart
I had written earlier on IL&FS Investmart covering the original hypothesis and the follow up action on the idea.

1) - Nov 2008

2) - June 2008

3) - June 2008

I finally exited the stock in the Rs 270 range where it has been hovering for sometime. Along the way the company has now become HSBC Investdirect. The delisting process is on track with shareholder approval been received for the same.

I decided to exit as opposed to wait till the final delisting event as my belief is that there is maybe a further 10% on the table. Looking at deploying the money in other opportunities or sit on cash.

From my original investment at Rs 84, the stock has delivered a absolute return of 221% over a 10 month period. If only I could find one like this every 6 months :-)


Anonymous said...

I was wondering what happens if your offer is above the final price and the delisting goes through by virtue of acquiring >50% shares outstanding ?

Do you end up holding shares that effectively dont have a market for ?
Comments ?

Ninad Kunder said...


There are 2 routes to exit

1) Once the bookbuilding is completed, it takes about 2 months for trading to get suspended so in the interim you could sell the shares thru the exchanges where it tends to trade at 2-3 % below the delsiting price.

2) Alternatively post suspension of trading the company has to offer the bookbuilding price for a period of 12 months to all shareholders and u can submit u r shares to the company.

Trust that answers u r query.