[SmartCat]

Originally Posted by Ananthang

Recently I read a News that Tinplate and Tata steel are merging and for every 10 shares of Tinplate they are alloting 33 Tata steel shares. How does this work if you have only 8 stocks of Tinplate. Any thoughts? Will it be prorated

Sounds like an exam question. Perhaps the answer is:

10 Tinplate shares = 33 Tata Steel shares
So 8 Tinplate shares = (8 x 33)/10 = 26.4 shares

So you will get 26 shares of Tata Steel and cash for the remaining 0.4 Tata Steel shares.

Note: I'm not 100% sure about this.

[Ananthang]

Originally Posted by SmartCat

Sounds like an exam question. Perhaps the answer is:

10 Tinplate shares = 33 Tata Steel shares
So 8 Tinplate shares = (8 x 33)/10 = 26.4 shares

So you will get 26 shares of Tata Steel and cash for the remaining 0.4 Tata Steel shares.

Note: I'm not 100% sure about this.

Thanks Smartcat. I also thought they would prorate but thought some of you might have real time experience. I will keep posted on how it spans out.

[reverse_gear]

Originally Posted by SmartCat

Sounds like an exam question. Perhaps the answer is:

10 Tinplate shares = 33 Tata Steel shares
So 8 Tinplate shares = (8 x 33)/10 = 26.4 shares

So you will get 26 shares of Tata Steel and cash for the remaining 0.4 Tata Steel shares.

Note: I'm not 100% sure about this.

Pro rata is right, but don't expect cash for the residual 0.4 shares. That's just not happening, sorry.

[rx100]

Originally Posted by reverse_gear

Pro rata is right, but don't expect cash for the residual 0.4 shares. That's just not happening, sorry.

I believe they have to issue the cash for the fraction shares since there would be many shareholders in the similar boat as the ratio is 1:3.3. In the past, I have received cash for the fraction shares during bonus issues.

[SmartCat]

The reason why I've never noticed this is because for me, it is the end of investment thesis in that particular stock. Usually there will be a spike in share prices, and I'd make the exit.

For eg: I would have invested in Tinplate because of its financials (RoE, profit growth) & valuation metrics (PE ratio, dividend yield). But if I agree to share swap, I'll be getting shares of a different company altogether (Tata Steel), which has different valuation/financial metrics.

[sen2693]

Originally Posted by Satkaj

I have been investor in stoks past 30 yrs.I am a long term investor. I stay invested and forget about selling few companies shares. Though there are few stocks in which I enter and exit within 3/4 yrs.

The maximum returns I have earned is by staying invested in big companies for more than15 yrs. Examples are TCS, Maruti, ICICI, Rallis , CRISIL and few such companies. Accumulated profits have surpassed all my trading account shares. These are the only shares which for me have created wealth.

With time , I prefer to focus in few good companies and put my hard earned money which now also is retirement plan for next 15yrs. My next long term bet is TATA’s NELCO. I strongly believe SATCOM is a next big space with all the big players entering such as Elon Musk’ Starlink, Amazon , Jio, Airtel(one web) etc. Satellite communication will only grow from here and will be an regular / parallel solution in may be 5/10 yrs.

That is a great wealth of expeience sir. Kudos to sticking in market when it wasnt seen as a wise investment (still isnt by some!) back then.

One question from me - Did you get better returns/equal returns in big companies in the 15 year timeframe than compared to Index funds? In case you invested that way too. Asking because, am a passive investor so just invest in Nifty 50 fund/Niftybees.

[Satkaj]

Originally Posted by sen2693

That is a great wealth of expeience sir. Kudos to sticking in market when it wasnt seen as a wise investment (still isnt by some!) back then.

One question from me - Did you get better returns/equal returns in big companies in the 15 year timeframe than compared to Index funds? In case you invested that way too. Asking because, am a passive investor so just invest in Nifty 50 fund/Niftybees.

I never invest in funds. Have always picked 3/4 companies and rest with them for long. The reason , I am not a kind of a person who will keep tracking growth charts. But I am sure these companies have given far better returns than Index. Though I am unable to put any comparison.

Just keep looking for few companies which gives me sound sleep after investing , I believe in and go with them.

[reverse_gear]

Originally Posted by sen2693

One question from me - Did you get better returns/equal returns in big companies in the 15 year timeframe than compared to Index funds? In case you invested that way too. Asking because, am a passive investor so just invest in Nifty 50 fund/Niftybees.

By definition, the Nifty 50 fund is comprised of 50 of the biggest companies. So if the big companies do well, the Nifty 50 will also do well. The comparison that you have asked for is, in a way, futile. For every individual who has outperformed the index by investing in individual stocks, there is another individual who has underperformed, and the index averages out these variances. It is just a question of your confidence level in taking stock picking decisions vs. relying on the index to give you the average stock returns. The expert (or self-appointed expert) investors tend to have more confidence in picking individual stocks, but if you do not have that ability yet, then better to be with index funds.

[sumeethaldankar]

Originally Posted by Fuldagap

You should update the signatue in your PAN. It will be quite helpful in the long run.

Read more kre here, if you are not already aware about it.

https://tin.tin.nsdl.com/pan/correctiondsc.html

Bit off topic but I finally got the PAN card corrected with my current bank signature. I had different signatures for a long time and I always worried if there would be concern raised for same. Thanks for this.

This is the link from where I got it done. It was complete online and did not have to run anywhere around. Just needed a updated pic and a image of the signature.

[sumeethaldankar]

In a view of the happenings these with the likes of Paytm and Byju just wanted to know what happens when brokers like Zerodha in a worst case scenario shut shop? How do we trade the stocks we had purchased (buy/sell or simply retain) through them? All this is just hypothetical and just to be clear what to do in such a case.

Thanks.

[Fx14]

Originally Posted by sumeethaldankar

How do we trade the stocks we had purchased (buy/sell or simply retain) through them? All this is just hypothetical and just to be clear what to do in such a case.

The overall transactions involve 3 different accounts :
1. SAVINGS account - maintained with any Bank and linked to the Broking firm. - NO IMPACT HERE.
2. DEMAT account - serviced through the broker but actually maintained with either NSDL / CDSL - PARTIAL IMPACT (would be affected till the account is linked to a new broker).
3. TRADING Account - FULL IMPACT - You would have to open a new trading account with another broker and arrange to link the accounts in #1 & #2.

[montsa007]

Originally Posted by sumeethaldankar

In a view of the happenings these with the likes of Paytm and Byju just wanted to know what happens when brokers like Zerodha in a worst case scenario shut shop? How do we trade the stocks we had purchased (buy/sell or simply retain) through them? All this is just hypothetical and just to be clear what to do in such a case.

Thanks.

All your equity stocks are held by the depository participant, NSDL/CDSL, the broker is merely a medium for transferring the shares when making a purchase/sale, so if a broker goes bust your equity stocks are safe. However am not sure what would happen to option/FnO positions.

There have been many brokers which have shut shop in the past.

You can get some info here : https://groww.in/blog/what-happens-i...ker-shuts-down

[SmartCat]

Originally Posted by sumeethaldankar

In a view of the happenings these with the likes of Paytm and Byju just wanted to know what happens when brokers like Zerodha in a worst case scenario shut shop? How do we trade the stocks we had purchased (buy/sell or simply retain) through them? All this is just hypothetical and just to be clear what to do in such a case.
.

After you buy property via a broker, it no longer matters what happens to the broker. After the purchase, you have the property documents in your name. The broker just facilitated the purchase. Similarly, after you buy shares in a company, it no longer matters what happens to the broker. The shares are in your name. Zerodha just facilitated the purchase.

Your Zerodha shares are held with CDSL. You can download their app and view your shares online. If Zerodha goes down under, just change your broker/DP online via CDSL.
https://support.zerodha.com/category...g-cdsl-easiest

Also, you should be getting monthly statements from NDSL or CDSL. Go to your email and search for "NSDL statement" or "CDSL statement". You will see emails with attached PDF document that shows all your investment data (shares, mutual funds, insurance etc) across multiple brokers or platform.

[Fx14]

Originally Posted by SmartCat

Also, you should be getting monthly statements from NDSL or CDSL. Go to your email and type "NSDL statement" or "CDSL statement". It will have a PDF document with all your investment details (shares, mutual funds, insurance etc).

Alternately, one can also search the email account for "eCAS" to locate the same PDF document with all your investment details.

[KL01toKA03]

I had bought 800 shares of Carysil at an average price of 700. The price has now reached 1000+ levels. I had bought only by looking at the price charts and not based on any other factor.

Can somebody who is able to understand the P/E ratio and other factors comment if this is a good stock to hold for one or two more years