aaj bhi listing nahi hua...abhi lagta hai monday ko hoga...DHFL is using peoples money for couple of days...though they have given refund..for ppl subscribing for listing gains lose interest on the days between allotment/refund and listing....
Interest will remain the same all throughout the period..that's fine....
But, anyone who applied during the issue launch has lost money...
For e,g : Case 1 :IPO time ,,,face value is 1000/- date 1st August 2016.
Case 2: Now the same ncd bought from secondary market is available at Rs 980/-
For Case 2 the benefit is :
a) Interest amt from August 1 to sept 20th on the application money..say 4-6% pa (min for saving accounts).,(if this money is rolled over many times in intra day/f&o trading or stock buying the gains can be more)
b) Base cost saving of Rs 20 per ncd
c) For annual interest payout of ncd he will get the same interest without investing for period of 2 months.
For 1 lakh amt
If the price reduces more (if some more NCD issue comes ) then buying NCD during issue time is loss making..!!
Unless you have a big sum invested, you can stay invested.
Yesterday's panic was triggered by DSP selling DHFL's paper at a discount because DSP is facing problems with IL&FS debt.
Right now, there are hardly any buyers for IL&FS's debt and thus funds have no choice but to sell other bonds/CP/debentures where there is liquidity.
IL&FS is a big player in the CP market.
IL&FS’s outstanding debentures and commercial paper accounted for 1 percent and 2 percent, respectively, of India’s domestic corporate debt market as of March 31, according to Moody’s Investor Services.
But how much quantity did you sell in the Dewan Housing and what is the balance that you still have in your funds?
It was sold on Thursday. I do not have the exact figure but it is around Rs 300 crore. Now, Rs 300 crore out of total Rs 96,000 crore of our funds is a very small amount and we have nothing against Dewan Housing. We have no information on it or any other company which has gone down on Friday.
Do you think today’s market reaction was slightly freaky and silly? One news is that a small paper was sold at 11%. That maybe one desperate selling but that really spooked the entire NBFC space?
See what happened is not a mistake. It is abbreviation. Some other mutual fund has sold at 10.75% and we sold at 11%. If the market spreads are calling 10.5-11% and one of my trader or fund manager sold at 11%, I cannot blame him. He has to use his discretion.
The panic is spreading from money market to banking.
Banks are sitting on huge piles of cash but are unwilling to lend.
This is compounding problems for NBFCs.
"The rollover is a lesser of an issue. It is more like banks are not willing to let withdrawal of money from their system even for sanctioned line. I think that is a bigger worry than CPs not being rolled over because after all CPs was just about 8-9 percent of my total borrowing. It is more to do with the banks where we have an issue presently," said Narasimhan.
Me & you have argued this before (really long back) in the context of the American Bailout
Only way someone learns a lesson is he pays for his mistakes. In the absence of that, there will be no learning. Only learning which will happen is that PSUs like LIC & SBI exist for the main purpose of bailing out private companies. They are also bailing out IL&FS whose people got rich by looting IL&FS.
WPI ..is younger brother of CPI...what the big thing abt it...model copied by DHFL...
People are so naive...
When Govt can tinker with GDP and growth rates...whats it abt CPI and WPI...
Already they are doing it on average (to be on safe side)....lololol
Calculation of Reference CPI for the 1st year based on the monthly CPI reference rates for the
preceding 12 months as provided in the table below:
CPI (General)- (Rural + Urban) Combined
Sr. No Months CPI Rate
1 May 2016 (Final) 5.76%
2 April 2016 (Final) 5.47%
3 March 2016 (Final) 4.83%
4 February 2016 (Final) 5.26%
5 January 2016 (Final) 5.69%
6 December 2015 (Final) 5.61%
7 November 2015 (Final) 5.41%
8 October 2015 (Final) 5.00%
9 September 2015 (Final) 4.41%
10 August 2015 (Final) 3.74%
11 July 2015 (Final) 3.69%
12 June 2015 (Final) 5.40%