Exide Industries

Good Evening Everyone,

Can someone please tell me why the stock prices of exide industries has dropped to 45 from around 380?

Thanks in Advance;
Shanky

Shanky

It s because of 1:10 Stock split

Exide Industries Ltd has informed that the members at the 59th Annual General Meeting (AGM) of the Company held on July 21, 2006, have approved the proposal to split each Rs 10 face value shares of the Company into ten shares of face value Re 1. The split is expected to raise the Company's floating shares in the secondary market.
ken

Thanks a lot Kenneth

Shanky

Hi,

Does the stock split ususlly result in profit for a trader if he already has some shares, say 100 shares?

Praveen.

Praveen,
See http://www.traderji.com/6564-post3.html

The underlying momentum preceding the stock split is usually carried forward after the split.

Additionally, since the price slumps due to the split, the scrip gets more attractive to potential buyers, so a bullish bias emerges for some time at least

AGILENT
P.S. The same concept applies to bonus issues (in India) but take note : what we call bonus in India is called stock split in USA , and what we call stock split in India does not exist in USA ( because there they do not have the concepyt of par value like we do in India ). If u are confused , and want to get wiser, read this threadhttp://www.traderji.com/equities/174...cks-split.html

If you are still confused , and want another 'story' , read another threadhttp://www.traderji.com/equities/718...s+1+%3A1+bonus

If you are still confused, go see a movie

I can guggest Lage Raho Munna Bhai. Bole to sab confusion khallas.

SAmjha Kya

You have gained Rs 6000 in a day but see when the 900 shares come to your demat and see the rate on that day.but with Exide Ind you should gain
Reason

Kolkata: Exide Industries is exploring acquisition opportunities in Germany. The company has also decided to carry out a Rs 120 crore-capacity expansion in all its facilities in India and is setting up second manufacturing facility at Haldia in West Bengal to primarily cater the export market. The facility will manufacture industrial traction batteries. A number of German battery makers have run into rough weather in recent years.
A number of German companies were forced to pull down their shutters in recent years due to high labour cost and the company is scouting for opportunities in both automotive and industrial battery segments. The acquisition, if comes through, will cater the European markets. Exide has subsidiaries in the UK (Espex Batteries Ltd), Singapore (Chloride Batteries S.E. Asia Pte Ltd) and Sri Lanka (Associated Batter Manufacturers Ltd).

Exide Industries Ltd, has firmed by capital expenditure plan of Rs 100-120 crore during the current financial year to meet growing demand from domestic and overseas markets, while also looking at manufacturing in Germany. Exide is looking at manufacturing in Germany where several units were on sale, despite high cost of human resource in Germany. Some manufacturing units in Germany had been inspected and a deal was likely within this financial year. Exide had overseas subsidiaries now, like Espex Batteries UK and two more in Singapore and Sri Lanka. It expected 30-35 per cent topline growth in the current financial year over last year's topline of Rs 1,761 crore, including 38 per cent growth in industrial batteries and 28 per cent growth in automotive batteries. Exide enjoyed share of 78-80 per cent in the automotive original equipment manufacturer market and 65 per cent share in the replacement market. Rising lead prices in the global market was unlikely to be passed on to buyers. Lead prices rose till April, after which prices dipped till mid-July, before rising again, gaining from $940 per ton to around $1,050 per ton.

Thanks a lot, Agilent. Ofcourse after reading the full post of "Havells 1:1 Bonus", I was very confused


Praveen.

Thanks for your information, Kenneth.
Praveen.

Im not surprised ... in fact like I said, I have to take the initiative and finish off the terribly-loose ends which reside in that thread ( now named : abt bonus and stock splits )

My good friend Ashish ( Aca ) knows abt it.

Will do after my travels next mth... but do I certainly will ... even if it means having to write a 'white paper' on this topic based on all the gyan gathererd from this site and elsewhere

AGILENT