Saturday, May 1, 2010

HSBC Investdirect - Exit

This one worked out better than I expected. I had earlier posted on the delisting opportunity of HSBC Investdirect. The link is enclosed below

As the book opened for delisting the initial bids came at the Rs 350 mark. The markets promptly anchored to this price and the stock ran up from the 300 band to a high of 335 yesterday. I promptly exited my position at a average rate of Rs 328 without waiting to find the delisting price. Afterall there is a huge risk that the 2 large players Mathews and Deutsche could tender it at a price lower than 350. This was better than my initial expectation of delisting in the 315-325 mark.

This transaction delivered me a return of 41% on my original investment in a 3&½ month period and about 16% on the second tranche of my investment in a months time.

Off to searching newer opportunities which are becoming very scarce with the run up in stock prices.

4 comments:

Madan Kumar said...

This is really cool! Congrats

- Madan N

Ninad Kunder said...

Thanks Madan

Cheers

Saif said...

Hello Sir,
there is a buy back offer of shares from Manaksia .Would like to hear your views on any arbitrage opportunities possible and how to carry them out .
more details here
http://www.manaksia.com/investor-relations/pdf/Public_Announcement_Final.pdf

Short summary...buyback of arnd 9% equity .max of 50 crores reserved,and price not exceeding 200rd.(Stock locked in upper ckt for 2 days,and is now at 146)

thanks,
Saif

kaustubh said...

Dear Ninad, really appreciate your detail analysis. Congrats for a handsome gain.
I bought IL&FS in late 2008 for 145 or so.... I missed selling these shares before delisting.

Will they list this stock again ?
How do I get my invested money (with gain) back ?

Welcome your suggestions on what next on this scrip.