Just an interesting observation.
Jain Irrigation CMP – 118-119
Jain Irrigation Dvr – 61.2
Any further lower circuits on DVR will make it interesting. Current discount around 48-49%.
Generally DVRs trade at 50% discount max.
For example Pantaloon and Tata Motors DVR have not traded beyond 50 % discount.
This is clearly a good switch for investors holding Jain Irrigation would be better of selling equity shares and buying DVR on further decline. Will be worth a gamble at 50 rs 🙂 ( maybe aggressive players may even try an arbitrage with a short on Jain Irrigations future ). But i would still wait till it goes to sub 55 to review.
One may do their own research as Tata Motors DVR kept widening from 35 to 45% over the next 1 year. So we dont have any precedents as worldwide the discount is around 25-35%.
This is just a quick observation will post more once i read more into it.
January 8, 2012
Morgan Stanley bought the DVR’s on 6th.
06-Jan-2012 JISLDVREQS Jain DVR Equity Shares MORGAN STANLEY ASIA (SINGAPORE) PTE BUY 1,06,524 35.00 –
January 11, 2012
Ya but some other fund sold it i suppose