As most of u will know that suzlon has given a rights issue @ Rs 63 . The current market price is Rs. 56.5. So y did the lead managers decided to go for Rs. 63 issue.I believe no retail investor in his right mind will avail rights issue @ rs. 63 if he can buy @ 56.5 from the market
So i see it as the case that the promoters and other insiders want to increase there holdings and rights issue is the best way to do it.
I think we may see this rights issue being subscribed mostly by the promoters and then we may see some good news or new orders for suzlon and prices will zoom up.
One more thing there was some heavy selling by promoters in may and september 2009 @ prices of Rs. 90 and 85. After which the company's result were bad and stock price took a hit.(LAME INSIDER GAME)
Plz correct me if i m wrong. All views on this topic are welcome.
vaibhav
So i see it as the case that the promoters and other insiders want to increase there holdings and rights issue is the best way to do it.
I think we may see this rights issue being subscribed mostly by the promoters and then we may see some good news or new orders for suzlon and prices will zoom up.
One more thing there was some heavy selling by promoters in may and september 2009 @ prices of Rs. 90 and 85. After which the company's result were bad and stock price took a hit.(LAME INSIDER GAME)
Plz correct me if i m wrong. All views on this topic are welcome.
vaibhav