We have carried a piece on Airtel RE on 6-10-21 here, giving fate of current valuation of RE vis-a-vis share, where it was stated that-
Smart investors are selling shares in cash, and are mopping up RE, to apply in the rights issue, which is open till Thu 21st Oct. RE now ruling at Rs. 205, is giving an effective cost of Rs. 340, each of Partly Paid (PP) shares, including application money of Rs. 133.75 paid. By doing this, they will apply for 2 RE by selling 1 share. Infact, volume of over 3 cr RE in last 3 days, confirms this.
As we are extremely bullish on share and expect it to rise to Rs. 750 by 1st Nov, when RE will get listed, PP share can see listing at around Rs. 400. So, relative gain will be higher on RE, as share and RE, both will rise by Rs. 55- Rs. 60, from here in about next 3 weeks of this month. Even RE trading will be suspended for trading from this Thursday and hence share may see an upward rise from Monday, 18th October itself.
Hence, keep bullish view on both RE & Share, as it is a trap and blunder, to calculate expected gain on RE, based on present share price, which has been kept low and suppressed.
Hope, this will have no confusion on RE & Share, from hereon.
This is not a Buy or Sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.