India Fund, Inc. (The) Common S Message Board
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Rights Offering
Does anyone know what this is about? Will this dilute everything?
Any comments?-
This is not good news for us IFN shareholders in the short term. I've seen them do this kind of offering 2-3 years back as well. They usually do the offering much below the current price and below NAV. I'm expecting the offering will be near $25.7 to $26 if they do it soon. The stock will drop to 26$ and then bounce back later.
- 1 Reply to ravireddykumar
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NAV is $26.72 as of 5/29
The rights offering got to be below the NAV.
Expect the price to be $23 or below
Now add plus or minus on how the markets behave in India. If you expect 20% correction in India markets, IFN could be below $17 level.
If the India markets hold up well, this stock is worth only $23 given the NAV and the RIGHTS offering.
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The Best Manipulation by MMs!
IFN's NAV is only $26.72 (see http://www.etfconnect.com/select/fundpages/global.asp?MFID=10498 ). Yet the stock closed at $29.38 with a 9.96% premium!.
IFN should trade close to NAV or 2% below NAV (when IFN is redeemed, Blackstone charges 2% fee).
The MMs know of this stock offering and shorted this stock with a 10% premium. Add another 20 to 30% dilution due to RIGHTS issue, IFN is soon heading to $20 even if the Indian Markets do not creater. If the India's Sensex corrects 20%, IFN should fall below $15 soon
It seems MMs shorted this stock at highs $29s and should cover below $20 or $15 depending on the Indian Markets!!- 1 Reply to stockplaza555
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I do think money managers rallied IFN 10% above NAV because they knew of the rights offering..but $15 level is highly improbable....$23-24 should be very strong support...and offering should be near $26.
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I don't think this will move our share price... But given that statement, I do have to do a bit more research on the whole thing.
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