Preferential Equity

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  • #1362
    admin
    Keymaster

    Thanks Lycos_Investor, much appreciated.

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    #1363
    Bitran

    This came as surprise. I was under the impression that no preferential share allotment. Isn’t this equity dilution?

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    #1365
    Bitran

    Now it is more or less clear for the reason for last 2 days LC. Also, this means that Daum might have been settled as one of the conditions by the new investors was to end litigation and then invest more. Interesting to see who are those investors.

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    #1369
    Srd.rdx
    Registered Boarder

    It will be Mr Reddy .. fairly positive..stay long in this counter

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    #1370
    Sagraa

    It means Daum issue is settled and price has been agree upon.
    SKR already said, preferential issue would be used to pay Daum.
    It is a equity dilution however, Daum is out of way now and more and more good news would come.

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    #1374
    Srd.rdx
    Registered Boarder

    The message is loud and clear.. Mr Reddy is committing his more money.Period!

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    #1376
    m4max1979
    Registered Boarder

    Could it be NCDs to private individuals or a company so eventually no dilution of shares?

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    #1377
    Shoumik

    Preferred stock holders get right of dividend only. So dilution is not possible if pure preference stock is issued..

    But as the company has come out of dividend distribution policy investors could be lured to subscribe to the issue.

    If skr himself takes all of the preference stock being issued , very good dividend can be expected out of this stock year on year . He would be getting this at 6 and can easily have 1.5 in div in the first year itself which over the years can increase. So his investment can be free within 2- 3 years and can have lifelong of dividends good dividend income..

    If this happens it would be best as all the other investors can also expect to have good yearly dividend over the shares they are holding . And Daum out of their way without taking out the money from the business and let it grow without any hindrance.

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    #1379
    108BULLGURU
    Spectator

    Nothing to worry there. I don’t think it will be any one else except SKR and may be … may be if at all some of his cootrie.
    Daum out of the way,hangover of preferential issue out of the way.
    If SKR or some solid very respected institution or person is buying, BCG will fly and have a vertical take off.
    Even if there is 5% dillution in 2 yrs time it will be nothing as by that time EPS reveneue BV etc will be way way high.
    BCG is heading towards fair price discovery. Dont be thrown out by these wild gyrations caused by the shenanigans.
    Great signs for all long suffering long term investors.
    Just think about this why would some one put money in BCG.
    Because it is great value and great future.

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    #1384
    108BULLGURU
    Spectator

    “The agenda of the meeting is to consider and approve the
    Preferential Issue of Equity shares: to specific individuals and entities subject to
    shareholder and regulatory approvals. ”
    Expecting preferential issue to be a master stroke in MNAY WAYS.
    I wrote yesterday that operators are playing with fire.
    They are finally done. They may have lost 5 million shares over last 2 days.
    This preferrential issue will sort out and clean all the mess in every way.

    Some one is very very greedy.
    But no worries.
    This will unleash the tiger BCG and its full power now on.

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    #1385
    Antojp27

    I think it is a good news. If skr or some other person or entity subscribe to this means that shows the interest or trust in the company. Not sure whether it will be diluted. But I remember in the conf call skr said that he is not looking for dilution. Also even if there is a dilution I don’t think it is an issue. Experts can advice here on dilution

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    #1389
    sobha
    Registered Boarder

    Shoumikji, What about convertible preferential shares?

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    #1390
    108BULLGURU
    Spectator

    Let us not think too much and let time reveal its time,shape ,nature ,terms and conditions ,buyer etc etc..
    Lot of water to flow under the bridge.
    Time to grab the opportunity to add or get in.
    It is no longer a zero or hero scenario.
    BCG IS A HERO.

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    #1391
    Shoumik

    Good morning friends.

    If pure preferred stock is not issued and convertibles are issued then some equity dilution will be there.

    Skr subscribing, will improve upon his stakes in the business , quench his thurst and let go the stock realise its true market value and potential.

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    #1396
    Odysee

    Yes, this would be equity dilution if it is a Preferential allotment of Equity shares, as the post re the BM agenda indicates

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    #1407
    108BULLGURU
    Spectator

    See management is in touch and in discussions with the top lenders/investors/bankers in USA.So they would know first hand where and how much they are valuing the company and its stock and what price they are putting on it.
    Do you now understand why some one is so desperate to get the ADDITIONAL shares of BCG which had life time highs of 156 when eps was 4 rupee and bv may be 30
    and now when it is hitting historical bottom.
    There is no end to one’s greed and the desire to control.

    No problem as long as all the shareholders benefit.
    This certainly proves that this stock will multiply in coming years in hundreds from current price if we also keep in mind where competitors are selling.
    I have bought now with both hands and i will hold every share for the story to unfold.

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    #1410
    Srd.rdx
    Registered Boarder

    My sense says…equity dilution will be in the range of 10-20%.
    Lets wait for the official news to come.

    And the investor could be a combination of DII(probably Goenkas ) and MR Reddy himself. May be subscribing 50-50% each.

    That’s purely my hunch ..No insider news..no sources like that!
    Story will unfold in coming days.

    HOLD Tight is the mantra!

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    #1418
    Saach
    Registered Boarder

    Let SKR open his all cards on the topic of preferential issue – number of shares, issue price, list of names/institutions, main reason(s) of choosing this route to raise the funds, locking period, confirmation of Daum status – the whole subject is very IMPORTANT platform to read between fine lines. All these points are very strong and positive for the group and shareholders. We just need patience and support our promoters strongly.

    These are exclusive my personal observations.

    Regards

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    #1421
    kpal

    Saach, I fully endorse your view. Totally relevant issues. No two opinions on that. Well said. Keep it up.

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    #1423
    108BULLGURU
    Spectator

    Market ,(well if you consider there is and was a true market for BCG ) has priced the BCG share for failure,bankruptcy,delsiting,closure.
    Why would a share of a company BV of 70 or so,EPS of near 10 sell at 4 rupee?
    Who and what is responsible for it?
    Is turn around happening with the promoter chipping in more funds?
    I leave you with these questions to think through and decide and share your views.
    You know my situation and my views NOW.
    More so with the promoter being so eager to buy more shares.
    Can you think of what will happen if any one tries to buy the same number of shares form the market and what will be the stock price?
    Keep smiling……

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