NIIT Technologies

P

panks_07

Member
#1
#1
Why is the next month Future trading so low ?

1566969197267.png

I tried and found this on Moneycontrol.
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NIIT Technologies Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS
| Announcement
27 Aug,2019, 04:06PM IST
The Company has allotted 576,680 shares through ESOP.
---
So after this month's expiry, the spot price will automatically reduce to account for above.. and that is factored in in next future's price. Am I correct ?
 

Attachments

P

panks_07

Member
#3
#3
Still a huge difference
1567054591361.png
FUT-NIITEC-26-Sep-2019750
FUTURE: 1,372.00
SPOT PRICE 1,490.80

Excellent arbitrage opportunity for the NIIT shareholders, isn't it ?

I almost feel like buying the future but holding-off with all this ESOP and open offers. I have not experienced this before.
 
A

Alchemist

Administrator
Staff member
#4
#4
panks_07 said:
Excellent arbitrage opportunity for the NIIT shareholders, isn't it ?

I almost feel like buying the future but holding-off with all this ESOP and open offers. I have not experienced this before.
Click to expand...
If you have the shares, then yes, you can sell now and buy the futures.

The stock price will come down as and when the unaccepted shares come back into the market.
 
P

panks_07

Member
#5
#5
panks_07 said:
Why is the next month Future trading so low ?

View attachment 9

I tried and found this on Moneycontrol.
---
NIIT Technologies Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS
| Announcement
27 Aug,2019, 04:06PM IST
The Company has allotted 576,680 shares through ESOP.
---
So after this month's expiry, the spot price will automatically reduce to account for above.. and that is factored in in next future's price. Am I correct ?
Click to expand...
1567576866618.png

So the Future price caught up well with the SPOT. I didn't benefit. Sometimes one should not think much and just go with the instincts :)
 
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