We have released 14th Jul’18 – DB Corp closure update. The same has been produced below. For other updates, please log into the website at the following link – https://katalystwealth.com/index.php/my-account/
Date: 14th Jul’18
14th Jul’18 – DB Corp closure update
DB Corp (NSE Code – DBCORP) – Jun’18 Special situation
CMP – 283.80 (BSE); 285.00 (NSE)
Rating – Neutral and coverage closure; this is not an investment advice (refer rating interpretation)
DB Corp opportunity was initiated in Jun’18 around 260 odd levels based on the tender buy-back announcement made by the company.
The ex-date for the buy-back is 17th Jul’18.
As per the latest shareholding pattern of the company, the number of shares below 2 lakh share capital (not same as 2 lakh holding value) have increased by almost 80% since Mar’17.
Considering 50% acceptance ratio, the cost of residual shares will be around 180 and to earn the same returns as on today, one should be able to sell residual shares at around 230.
Looking at the fall in stock price of Jagran Prakashan (post ex-date), we believe the current price of DB Corp offers a good opportunity to lock in the gains of around 9.5% in a holding period of month or so.
We would therefore like to close the DB Corp opportunity around current levels of 284-285.
Note: If you would like to lock in your gains, please sell your holding in DB Corp on 16th Jul’18 as 17th Jul’18 is the ex-date. For those willing to take risk for additional gains (if at all the acceptance ratio turns out higher), they can consider holding on to the stock; however going forward there won’t be any update from our end.
Disclosure: I and my family members hold investment in DB Corp with buy trades done within the last 30 days.
Ph.: +91-727-5050062, Mob: +91-9818866676
Email: [email protected]
Positive – Expected return of ~15% + on annualized basis in medium to long term for investment recommendations and in short term for Special situations
Neutral – Expected Absolute return in the range of +/- 15%
Negative – Expected Absolute return of over -15%
Coverage closure – No further update on the stock
% weightage – allocation in the subject stock with respect to equity investments
Short term – Less than 1 year
Medium term – Greater than 1 year and less than 3 years
Long term – Greater than 3 years
Research Analyst Details
Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
Analyst ownership of the stock: Yes
Details of Associates: Not Applicable
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.
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The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
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Disclosure (SEBI RA Regulations)
Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, in DB Corp
Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No
Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No
Whether it or its associates have received any compensation from the subject company in the past twelve months – No
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No
Whether the research analyst has served as an officer, director or employee of the subject company – No
Whether the research analyst or research entity has been engaged in market making activity for the subject company – No