Conviction of Mind

Today, company has announced the exit price to be at Rs.410/- You can tender your shares even if you have not bidded before before 6 months. The CMP is Rs.395/- and it is about 3% profit in less than a month. But there are many traders/investors out there who could make more money than this and getting out of this stock now. Even if you have bidded above the exit price, wait for your shares to come back to your DP and then sell it to the company at exit price. What will happen when you dont want to sell the shares? You needn't have to sell it but it will get delisted from the exchanges. Then you are eligible to get the dividends that the company announces from time to time. Cheers!!!

Currently, the market price is going up as the delisting process is going on.The buyback will occur only at the price in which Igate can get 90% of the holdings. So, it will be quite high if some of them do not bid or put some high price. So, Putting a high price/Not bidding are almost the same. The CMP is at around Rs 392/- now. When you are putting a high price, the exit price will be lower than your price and then you can tender your shares at the exit price at later point of time. But instead, if you prefer not to bid also, it is the same case, you can directly sell the shares to the company at the exit price. So, both of them are same... But what happens when you are bidding at a lower price, you are actually getting down the exit price and it affects all of us. So, If you aren't sure how much it is worth it, you can see the current status of the buyback @ Buyback-Igate So, stay out of bidding if you are in the view of bidding less. I can see some 25 shares (very meagre amount...

I said it is worth the bet in my previous post . For delisting, the owner should atleast have 90% of the company's share. This is not the case with Igate which has only 80.1% currently. But it can continue with delisting process as it is approved by the shareholders. The floor price for the delisting process is set at Rs. 288.90/- , which is the 26 day average of high and low price. The current market price is Rs. 374/-. As I said before, there is no ceiling price and one can bid at whatever price he likes! The price will be decided after the Reverse book building process and it is decided by the price quoted by majority of the people much similar to IPO book building. The management then decided to carry on or cancel the de-listing process at will after the exit price is known. If the exit price is approved, then that price will be the price at which the management buy back all the shares. If the price you quoted is greater than exit price then yours will not be bought by the comp...

Igate solutions has come up with a delisting plan and the market reacted with a surge of 10% on the same day. Current market price is Rs.373/- It is going to get de-listed by the 1st week of December. Is it worth the bet to buy now? I will give you more insight on this deal. The company's profit is moving up every year starting from 2004 when it reported negative EPS. Because of the management change, it has come up to buy back all the shares from the Indian share market. It would continue to be traded on NYSE though. As it is a IT company, the current rupee Vs dollar issue certainly affects the revenue. But still the chairperson of IGate has announced that the buy back price will certainly be higher and he is happy about it :) If we keep P/E as 15, then the price at FY08 will certainly be around Rs. 435/- . If P/E is kept at the price would be around Rs.415/- . The buy back price is expected to above Rs.400/-. Igate is going to buy back its shares by a process called Reverse Book ...

Shares are given by companies as part of their ownership. The ownership will be divided into many parts and a part will be said as a share. For example, If you buy a share in a company which has given out 1 Lakh shares, you are the owner of 1/1 Lakh of that company. If you are new to share market, you would have seen many giving recommendations in TV and also from your friends and many other websites. These are just recommendations. Just think this way, If they know the price before, they can easily make large amount of money in the market. Always believe in you and make decision for yourself or blame yourself. Don't ever try to simulate others. Try to do your own research before investing. How can I get a share of a company? You can get a share of the company, when it releases IPO (Initial Public Offering) or directly in the secondary market.

It is the *mobile* world and wherever you go you can see people speaking in their mobile, even while driving!! There are many service providers in India, Hutch (I prefer this one, cos of its low cost) Airtel (Better coverage all over India next to BSNL) BSNL (Public) Reliance and Tata Indicom (Using CDMA Technology) You can get your monthly rental amount from net and according to your usage there are many plans available. For this you have to do a great research in finding the lowest rent. For example, Recently Hutch announced OneIndia plan (Re. 1 all over India) for Rs. 125/-, if you go to retailer every month. But When I asked for the same to be taken from my balance they are charging the double of it. What will you choose here? (If you are really in need of taking oneIndia plan) I have also seen Hutch giving me Full Talktime for specific recharges with validity (Ex. Rs.875/- recharge, where I will get 6 months validity and 787/- as talktime.) They use two different wor...

In my last post , I advised all to go to Term Insurance. This post is elaborate the same. First of all, on the safer side, you would have chosen to take insurance. Thats right. But what insurance plan to take. There are many insurance plans available in the market. Which to take?.. Thinking.. Here is the solution. You should remember that Insurance agent or Financial advisor has their own family and they also have to look for more money. so, they will also go with the company's plan that gives them more income.. Accept it? There are more companies offering insurance and some of them are, LIC , Kotak , ICICI , etc.,. You can check out the premium for each plan from their website. Dont take a decision to put your money into LIC or any other as someone told you to do so. Take your own decision after analying all the companies. Two things you should have to keep in mind. With Term insurance, 1. you will not get anything back in your life time. 2. Only the nominees will be getting the m...

Most of them would have come across this phase of 'saving tax' during their first year of working (entering into a professional world). They need help on where to invest to get higher returns and how much to insure themselves. This is to help you in making a decision, so that you needn't have to invest in something/somewhere without proper knowledge and regret for it later. (I have seen many doing this) How much can I save and where can I save/invest? How much should I insure? Have I insured enough? These are the questions that comes to you and the answers depend upon the returns you want and the risk appetite you have. The maximum one can save now(2007) as per law is 1Lakh. This also includes your PF. So, exclude that and calculate. You can additionally save a max. of 10,000 from tax, if you are going to buy Mediclaim for your relatives or for you. And also, there are many ways to exclude tax by spending! Insuring is always a best practise. You can insure yourself for atle...

There are various ways to get money and equally more ways to spend it. The question, most of them ask, is "Where to put in my extra money to get higher returns?" This involves many factors like, 1. How much time you are going to remain invested? - Time span. 2. How much risk you are willing to take? - Risk 3. How often and when do you need money? - Liquidity The banks give interest for the money you have saved with them in SB account. Surely, I will not call this as investment. You may have wondered, how come they are able to give some more money as interest. This is the time factor that comes to play here. The thing you buy today at Rs. 100/- will not be the same after, say, 10 years. For example, The price of Gold before 20 years would be very less compared to what it is today. This is due to inflation. Inflation rate is the rise of prices in every year. It is something between 4-8% in India. Now, it is almost 6%. So, What does this mean? If you are saving in a bank, the re...

One should always think on investing if he has more money left after spending for his needs. Actually, what does that mean? His 'cash flow' must be positive. Cash flow is the net amount with you after you spend for your expenses from your earnings. Roughly, calculate it this way, How much are you getting every month (if you are a salaried person, its your salary)? - A How much you are spending every month (It includes everything like food, clothing and every other needs) - B Strictly speaking, (A-B) is your cash flow. Simple, isn't it? Apart from paying for your expenses, you should also have to save for the future expenses. Also, there is a high possiblity that you have some financial goals in your life, like, 1. Buying a car, house, etc., 2. Do marraige for you sister or son or daughter. 3. Financially free over the years to come. 4. Plan to retire soon... 5. Anything that the money can get you, that you can think of! For all the above said things, you will be eagerly wai...

I have been waiting to write a blog for quite some time. Time has come now. I have started this blog.Trying with some philosophies. You should have to live happily and that lies in your heart and mind. There are many things that money cannot buy and that should also be kept in mind. Life is always a Game. you can win and lose and thats part of life. Always try to be happy and have a smile in your face, that will give a boost to you. This post will contain information about my home country (India) - But the concepts hold good all around the world. Its the funda that makes you think in the end.I am also a new investor in shares and also new to making money. I will share my experiences here and will be grateful to see your comments. Happy saving and investing!