I hold Sah petro! Need advice

ESAM

New Member
#1
I hold considerable quality of Sah petro. It was by chance I bought it at around 22 a few months before. Now I hear there is some public offer to buy the shares around Rs. 48. What should i do? Is it better to wait? The price of the stock is 33. Is it good to wait further?

regards
 
#2
Sah Petroleums - Open Offer
October 20, 2008

Kotak Mahindra Capital Company Ltd (Manager to the Offer) on behalf of NAF India Holdings Ltd (Acquirer) along with Navis Lube Holdings Pvt Ltd, Navis Asia Fund V LP, Navis Asia Fund V (2) LP, Navis Asia Fund V- E LP, Navis Asia Fund V GP LP & Navis Asia Fund V GP Ltd (Persons acting in concert or PACs) has issued this Public Announcement (PA) to the Shareholders of Sah Petroleums Ltd (Target Company), pursuant to and in compliance with, among others, regulation 10 & regulation 12 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 & Subsequent amendments thereto (Regulations).

The Offer:

The Acquirer proposes to acquire 88,00,000 (Eighty Eight Lacs only) Shares of the Target Company (Offer Size) representing 27.50% of the Current Share Capital (20% of the Diluted Share Capital) of the Target Company, at a price of Rs 48.50 (Rupees Forty Eight & Fifty Paise only) for each Share of the Target Company (Offer Price), to be paid in cash in accordance with the Regulations.

Schedule of Activities:

Specified Date - October 31, 2008

Date of Opening of the Offer - December 04, 2008

Date of Closing of the Offer - December 24, 2008
friend, it's unwise to be greedy when everything is falling. It's true that 48.5 is reachable. but don't forget if market goes down you'll not even get 22rs.

since you are in a profit. you must make sure that your profit does not go away.

It's wise to take 50% profit and exit the counter.

Do you remember Ranbaxy and its open-offer. prices zoomed and fell like falling stone. but Ranbaxy promotors got the "big money."

I suggest you to (ask your broker to) put a stoploss at 32rs, so that you don't lose your 10rs profit you're holding now.

be reasonable, it may not go till 48.5 seeing the present market conditions.
 

vasa1

Active Member
#3
friend, it's unwise to be greedy when everything is falling. It's true that 48.5 is reachable. but don't forget if market goes down you'll not even get 22rs.

since you are in a profit. you must make sure that your profit does not go away.

It's wise to take 50% profit and exit the counter.

Do you remember Ranbaxy and its open-offer. prices zoomed and fell like falling stone. but Ranbaxy promotors got the "big money."

I suggest you to (ask your broker to) put a stoploss at 32rs, so that you don't lose your 10rs profit you're holding now.

be reasonable, it may not go till 48.5 seeing the present market conditions.
Fully agree. Take your investment of the table plus opportunity cost. Then, if you want, let the rest ride.

I also like the idea of a trailing stop loss but I think you need to do that every day. If that is convenient then go for it.

Also ask why the stock has stopped rising at it was a few days ago.

Sometimes the market calculates that the open offer will not accommodate all the floating stock and hence the present price may be taking that into consideration.
 

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