L&T Finance Holdings – Inclusion into Futures and OFS – Something fishy ?

There are some very interesting things which has happened with this stock. No time to write a detailed post but this is how it went for last 3 days.



-> Stock included into FNO on 11 March with effect from 13th March. ( NSE has never done a mid contract inclusion and such a quick effect i suppose )

-> Stock rises up the next day from 81 to 86.

-> The stock traded 3 cr shares yesterday with around 32% delivery marked. Around 1 crore shares delivery.

-> With no dividend or any other corporate action the stock was at a 5% or higher discount to the spot price in futures.

-> Yesterday in the evening company declares an OFS http://www.bseindia.com/corporates/anndet_new.aspx?newsid=07289df6-d6bb-4dd5-9b3b-d1a6550e580f 

with a Floor Price of Rs 70.

-> The Open Interest is around 2.47 cr.



The sequence of events is very fishy.



Why did the stock quote at a 5% discount yesterday. Somebody had knowledge about the OFS and sold a good chunk in futures. Today the discount will reduce and so will the price.



A good 1 cr shares got sold off yesterday and a bigger chunk in Futures. The same will get covered today through the OFS of 5-8 cr shares. Somebody could have made a real chunk of money by knowing the above sequence of events stinks



Would love your comments, I can be entirely wrong here.

OFFER LOWER SUPSCRIPTION CHARGES

GIVEN CALLS PERFORMANCE

GIVEN TODAY BUY IOC @ 267.25 HIT 273.45. MANAPPURAM FIN @ 22.15 HIT 24.05. HOTEL LEELA @ 16.30 HIT ACHIEVED ALL TRGT HIT 17.30. BUY & HOLD MCX @ 522 HIT 540.45. INFOTECH ENT @ 341.50 ACHIEVED TRGT HIT 359. VASCON ENGINEERS ROCKED ACHIEVED TRGT HIT 20.60(UPPER CIRCUIT 20%). DCW @ 10.45 ALMOST ACHIEVED TRGT HIT 11.40. DISHMAN PHARMA @ 95.15 ALMOST OPENDED NEAR TRGT. FIN TECH @ 384.70 HIT ROCKED ACHIEVED TRGT HIT 403.90(UPPER CIRCUIT 5%). BUY AND HOLD SHRIRAM TRANSPORT @ 655 MORE TILL 651 ACHIEVED 1ST TRGT HIT 672. BUY AND HOLD IDEA CELLULAR @ 138 HIT 141. RISK TRADER BUY JINDAL STEEL @ 261 HIT 263.75. EARLIER GIVEN CALL ALSO ROCKING.

BUY AND HOLD IDEA CELLULAR

BUY AND HOLD IDEA CELLULAR @ 138 TRGT 145-155-170. SL INTRADAY 133 POSITIONAL SL 125.

PRE MARKET CALLS

PRE MARKET CALLS GIVEN TO PAID CLIENTS - MARKET TO OPEN FLAT. BUY IOC @ 267.25 TRGT 280+ SL 260. MANAPPURAM FIN @ 22.15 TRGT 27+ SL 21.50. HOTEL LEELA @ 16.30 TRGT 16.80 - 17.20+ SL 16. INFOTECH ENT @ 341.50 TRGT 355+ SL 337. VASCON ENGINEERS @ 18 TRGT 20+ SL 17.50. DCW @ 10.45 TRGT 11.50 SL 10.25. DISHMAN PHARMA @ 95.15 TRGT 100+ SL 93. FINANCIAL TECH @ 384.70 TRGT 400+ SL 379. BUY & HOLD MCX @ 522 TRGT 550 - 600+ SL 510.