Partly paid up shares of Tata Steel Ltd in a downward slide

The partly paid up shares of Tata Steel Ltd has been on a downward spiral off-late. The partly paid up shares were issued through a rights issue in February 2018.

The partly paid up shares were issued at a price of Rs. 615, where the investor had paid Rs. 154 on application (Face Value - Rs. 2.504 and Premium Rs. 151.496) and the balance amount of Rs. 461 (Face Value - Rs. 7.496 and Premium Rs. 453.504) to be paid on first and final call.

The shares were trading at Rs. 65.85 in NSE today, which is the 52 week low as well for the stock. The stock had hit a 52 week high of Rs. 184. The fully paid up shares were trading at Rs. 487.50.

The partly-paid up shares are trading at a premium of Rs.39.35 as compared to the market price of Rs. 487.50 for the fully-paid up shares.

Current market price of fully paid-up shares - Rs. 487.50
Current market price of partly paid-up shares - Rs. 65.85
Balance amount to be paid by partly paid-up shareholders - Rs. 461
Total amount to be paid by investor who holds partly paid-up shares - Rs. 461 + Rs. 65.85 = 526.85
Difference between current market price - Rs. 526.85 - Rs. 487.50 = 39.35

Source : Equity Bulls

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