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Q.

Tata Motors fell 9.56% over the week after the India`s largest automobile company announced it will raise Rs 72 billion via Rights issues to fund the acquisition of Jaguar.

Can anyone explain why the price should go DOWN when rights issue is announced?

Asked by Bijoy C, 01 Jun '08 12:47 am
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Answers (5)

 
1.

I THINK IT IS JUST BECAUSE OF THE SOARING PRICES OF FUEL AND STEEL WHICH IS PULLING THIS STOCK TOWARDS THE LOWER SIDE BUT BELIEVE ME MY FRIEND THIS SHARE IS A VERY GOOD SHARE WITH LOT OF POTENTIAL.
Answered by Randeep Dhaliwal, 01 Jun '08 02:00 am

 
  
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2.

Public se zyada paisa ekatha karna hai TATA walon ne TATA karke,Company ka zyada share Markewt mein hoenga tou share ko tou thori si maar paregi na bhai.
Agar TATA company mein dum hota tou khud ke balbute pe Jaguar na Kharid lete.
TATA company ko maloom hai ke India mein investor logo ko aaram se bevkoof banaya ja sakta hai isiliye yeh sab hua hai.
Answered by jagmohan kumar, 01 Jun '08 01:15 am

 
  
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3.

BIJOY it is NOT only declaration of BONUS?RIGHTS issue which control the CMP of a stock, there are various factors which are volatile... Did you not observed RPower?
Answered by Virendra K, 01 Jun '08 11:07 am

 
  
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4.

it is nothing to do with the rights issue, entire market is down. mahindra and maruthi also down. nothing to worry they will bounce back.
Answered by vedula rs, 01 Jun '08 01:18 am

 
  
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5.

Tata is arranging more money for the jlr-landrover deal. That's why it is decliniing. And it will recover very soon just after the deal got finished. And TATA will make profit from the deal.
Answered by Sanjay Kumar Gartia, 01 Jun '08 12:47 pm

 
  
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