Make choice today that you won’t regret tomorrow.
While I am not interested in penny stocks, But out of curiosity, how people are just falling into it, when something is cheap, I just interfere.....
For convertible warrants, promoters, at the time of the allotment, are required pay nearly 25% of the post conversion amount inadvance. If the warrants are not converted within 18 months of the issue, they are lost. Many promoters had subscribed to warrants at the height of the bullrun, but had to give up them if bear run happenes.
There is no logic to convert warrants in the bear run, because promoters can get their shares at a cheap price from secondary market than the warrant conversion price.
PMCFIN daily chart for one month only
Some companies that have either converted warrants or made a preferential allotment to promoters or group, include ARIHANT Foundations, ORBIT, SUJANA Metal, SUBEX and TANTIA Constructions. ARIHANT has approved conversion of 4.3 lakh convertible warrants out of total 15.5 lakh convertible warrants. Orbit Corporation has allotted 10 lakh something equity shares each to its promoters on conversion of warrants. Sujana Metal Products has allotted 1.2 crore equity shares to its promoters against conversion of 1.2 crore warrants out of the 5-crore warrants, which were allotted by the company by preferential allotmentM SUBEX has issued 40 lakh shares to an entity belonging to the promoters or the promoter group at a price of Rs 80 by way of preferential allotment. Similarly, TANTIA Constructions converted eight lakh equity shares, all this happened when the market was at peak in 2008. And see weather it helped the investor community or it turned out to be a gimmick.
The picture says more than the words
Monthly charts for other stock we mentioned above.
