Conviction of Mind

This is the question that is in the mind of everyone who is having some Igate shares in his hand. I have been getting this query for the past few days from many sides. First, to make it clear, If you are selling it to the company @ the exit price, you are not going to pay STT (Service Transaction Tax) and there will be huge tax applicable. Case 1: If you are holding the shares for more than a year (Long term capital gains) - 20% on the profit as tax. Case 2: If you are holding the shares for less that a year (Short term capital gains) - 30% on the profit as tax. The better option is to sell directly in the market @ current market price. If you are selling directly in the market, the tax would be zero (Long term) or 15% (Short term). Note there might not be any brokerage if you are selling directly to the company but if you sell in the market there will be brokerage and STT. For those, who don't want/like to sell in the market for different reasons (Illiquidity, more profit), You wi...

Good News finally from the Budget of this year. our FM has reduced the tax we are paying by Rs.44000/- for people earning above Rs.5 Lakhs. The snippet on Income tax .., I propose to make some changes in the slabs for personal income tax. I propose to increase the threshold limit of exemption: In the case of all assesses, from Rs. 1,10,000 to Rs. 1,50,000, thus giving every assessee a relief at a minimum of Rs.4000/- Consequently, the four slabs and rates will be as follows: Upto Rs.1,50,000 - NIL 1,50,000 to 3,00,000 - 10% tax 3,00,000 to 5,00,000 - 20% tax Above 5,00,000 - 30% tax. Women Assessee - 1,45,000 to 1,80,000 -Minimum slab. Senior citizen - 1,85,000 to 2,25,000 - Minimum slab. The Income tax for almost everyone has been decreased at least to some extent after the budget. Here comes the bad news for short term traders/Speculators.(Investors?) Dividends that are distributed attract a tax of 15%. Short term capital gains attract a tax of 10% under Section111A. There is meri...

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.