Tuesday, August 17, 2010

New substantial holder in India Equities Fund

I recently created a post on India Equities Fund (INE) on 08/08/2010 regarding the fact that the company appears undervalued considering the cash it will be holding after a capital return to shareholders and the value of the listed ASX shell.

Only 5 days later a new substantial holder noticed was lodged on 13/08/2010 with GW Holdings Pty Ltd declaring an interest of 22,752,981 shares (18.8%) purchased on 10/08 and 11/08.  I am interested to see what the intentions are of this company.  Unfortunately google searches proved unsuccessful so I couldnt join any dots together and work out what kind of investments this company has undertaken in the past to gauge whether they have a track record of using shell companies to effectively 'vend in' or backdoor list other companies.  Watch this space.

For those with experience in company options it is interesting to note that the bid/ask spread on INE is 0.053/0.058 whilst on the options it is 0.05/0.064 so possibilities of arbitrage could occur (liquidity allowing).  The INEO options have an exercise price of zero (0) however expire at the end of August, in other words, don't forget to allow for postage time for your exercise form to get to the share registry.

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