which one would you invest in?

#1
1) Reliance Communication

Maturity : 01-Mar-2012

Maturity Value : 127.69

Current Price : 70

Conversion Price : 661.21

Current Market Price : 167

YTM p.a : 20.40%



2) Reliance Communication

Maturity : 10-May-2011

Maturity Value : 121.78

Current Price : 85

Conversion Price : 480.66

Current Market Price : 167

YTM p.a : 17.92%



3) Tata Motors

Maturity : 27-Apr-11

Maturity Value : 121.78

Current Price : 67

Conversion Price : 780.40

Current Market Price : 132

YTM p.a : 29.59%



4) Tata Motors

Maturity : 12-Jul-12

Maturity Value : 131.82

Current Price : 52

Conversion Price : 780.40

Current Market Price : 132

YTM p.a : 28.78%



5) Ranbaxy Labs

Maturity : 18-Mar-11

Maturity Value : 126.77

Current Price : 95

Conversion Price : 716.33

Current Market Price : 186

YTM p.a : 13.93%



6) Pidilite

Maturity : 12-July-12

Maturity Value : 139.37

Current Price : 74

Conversion Price : 256.035

Current Market Price : 101

YTM p.a : 17.8%
 

bandlab2

Well-Known Member
#3
TISCO CCPS :

CMP : 24.49
Underlying CMP : 166.35
Maturity : Sept 1, 2009
Conversion Ratio : 6:1

Strategy :
For example, if you have 100 shares of Tisco, sell them and buy equivalent of CCPS.

Net proceeds from sale of TISCO = Rs 16,635
Number of CCPS purchased = 678 (rounded to nearest multiple of 6)
Number of TISCO shares converted from CCPS on Sept 1, 2009 : 113 shares (678/6)

So on maturity, you will have 113 shares of Tisco.

Absolute return 13%.
Number of days : 218 (approximate)
Annualized Return : 21.75%

add 2% interest they will give you fo each CCPS
 

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