Ahmednagar Forgings

Arbitrage opportunity

Posted by : goldentip
Price when posted : BSE: Rs 89.15 ( -0.78 % ), NSE: Rs. 88.80 ( -1.39 % )

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Yes you got your math right, but not the fundamentals.

They will take 10 shares of Ahmedforge, and give you 5.6 shares of Amtek Auto post-merger. Post-merger, Amtek Auto will contain the business of Amtek India and Ahmedforge, as well as some other unlisted subsidiaries.

Even at today's cost, 10 shares of Ahmedforge = 900
5.6 shares of Amtek Auto = 986

So instead of buying Amtek Auto, buy Ahmedforge in multiples of 100.
However you have to be a believer in Amtek Auto's fundamentals to buy Ahmedforge.




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In reply to:

Arbitrage opportunity

Posted by : Madineedi

Let me put the message in this way.
Dump the stock why?
You will get 5.6 shares of amtek auto for every 10 shares you have in ahmed nagar forge. Now amtek is trading aroung 176 rupees and ahmed forge is around 90 Rs which makes no sense because you will be getting amtek shares for ahmed forge shares.

Just figure it yourself they will take your 10 shares and return 5.6 shares which will put you in loss. Dump it, it can go much lower.

Arbitrage opportunity

Posted by : Madineedi
Price when posted : BSE: Rs 89.85 ( 1.30 % ), NSE: Rs. 90.05 ( 1.92 % )

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Let me put the message in this way.
Dump the stock why?
You will get 5.6 shares of amtek auto for every 10 shares you have in ahmed nagar forge. Now amtek is trading aroung 176 rupees and ahmed forge is around 90 Rs which makes no sense because you will be getting amtek shares for ahmed forge shares.

Just figure it yourself they will take your 10 shares and return 5.6 shares which will put you in loss. Dump it, it can go much lower....

In reply to:

Arbitrage opportunity

Posted by : goldentip

You have to calculate yourself.

C1= (cost of ahmedforgex100)/56
C2= cost of amtek auto

as long as C1 is less than C2, you have an arbitrage opportunity with respect to when the merger takes place.

Since C2 is near its 52 week low, and C1 is even lesser, it makes more sense to buy Ahmedganar forgings because then the acquisition cost of Amtek Auto becomes C1.

To calculate cost, please take into account brokerage, ST and STT.

Arbitrage opportunity

Posted by : goldentip
Price when posted : BSE: Rs 89.85 ( 1.30 % ), NSE: Rs. 90.05 ( 1.92 % )

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You have to calculate yourself.

C1= (cost of ahmedforgex100)/56
C2= cost of amtek auto

as long as C1 is less than C2, you have an arbitrage opportunity with respect to when the merger takes place.

Since C2 is near its 52 week low, and C1 is even lesser, it makes more sense to buy Ahmedganar forgings because then the acquisition cost of Amtek Auto becomes C1.

To calculate cost, please take into account brokerage, ST and STT.

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In reply to:

Arbitrage opportunity

Posted by : pkgautam1973

up to which date this opportunity will giving by AHMEDNAGAR FORGIN.
CAN I BUY TODAY.

Arbitrage opportunity

Posted by : pkgautam1973
Price when posted : BSE: Rs 176.20 ( 1.35 % ), NSE: Rs. 176.35 ( 1.64 % )

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up to which date this opportunity will giving by AHMEDNAGAR FORGIN.
CAN I BUY TODAY....

Ahmednagar Forge

Posted by : Madineedi
Price when posted : BSE: Rs 91.90 ( -1.66 % ), NSE: Rs. 93.00 ( -0.64 % )

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I have 200 shares of ahmed nagar forge at 98 Rs please guide me for short term and also about the merger...

Ahmednagar Forge

Posted by : Madineedi
Price when posted : BSE: Rs 91.90 ( -1.66 % ), NSE: Rs. 93.00 ( -0.64 % )

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I have 200 shares of ahmednagar forge @ 98 please guide me about the future of this stock (short term prospective)....