i Develop Stocks Advisory

Promoters doing bottom fishing... iDevelop has been ushering that the current melt down is an oppurtunity for the promoters and value buyers for bottom fishing and now one of the leading paper media has gone on record to say that the same is being happening which reads as follows: It’s not just the portfolio investors who were bottom-fishing in the market. Promoters of a bunch of mid and small-cap firms have taken advantage of the market meltdown to buy shares of their own companies from the open market through the creeping acquisition route. Some companies whose promoter groups have bought shares in the last fortnight when the market crashed include NIIT, Maharashtra Seamless, Gujarat NRE Coke, Uflex, KRBL, Hitech Gear, Birla VXL and Jyoti Structures, among others. Promoters raise their equity stake for various reasons. Typically for shoring up equity holding or infusing funds into the company, the owners go for preferential allotment of shares or convertible instruments such as warrants. The creeping acquisition route of buying shares, for which there is a mandatory ceiling in a particular year, entails buying shares from the secondary market is typically done when promoters feel the price in the market is low enough to justify such a purchase. Some firms with healthy cash reserves even go for equity buybacks which in turn tends to increase promoter holding while repricing undervalued stock. So it is clear that if the businessmen think that their businesses won't be affected by the current global scenario so everyone should also look at it in a very positive manner. Like what Mukesh Ambani did when he picked stake in RIL at 1800 ..........