Why invest in Hindalco ?

Partly paid shares of Hindalco offer better proposition

Though Metal stocks have been laggards in the recent run up on bourses, they have provided regular trading opportunities for the trades. One such stock is Hindalco.

However, what what we are going to talk today is about an alternate to trade in Hindalco. In addition to Hindalco's fully paid up shares, the partly paid up shares of Hindalco are also traded on BSE. Currently Hindlaco is trading at around Rs. 170 while the partly paid hindalco shares are trading at Rs. 89.

However, the partly paid shares of Hindaco simulates the movement in price of fully paid Hindalco shares so as to maintain the price differential. This offers a double advantage to holders of partly paid shares. One, they are able to trade in hindalco at nearly 52% of the price of fully paid sahes and hence are able to take more exposure. The other bigger advantage is that in order to maintain the price differential the partly paid shares move at a higher percentage than the fully paid up share, thus providing more room for traders.

Even from Investing point of view, one can hold the partly paid up shares instead of fully paid up shares and can nearly double his earnings from the stock in terms of percentage gains !!

Note of Caution : ( The above write up does not recommends Hindalco as as Investment opportunity. It just explains the benefits of holding partly paid shares of Hindalco instead of fully paid up shares)


Anonymous said...

what is the BSE code for the partly paid shares?

Anonymous said...

How to purchase the partly priced shares

Anonymous said...

As mentioned by rajesh, these are traded on BSE and you can buy by placing an order on BSE for the partly paid shares. If you use ICICI direct you can use ICICI direct code : HINPPS



Excellent excellent excellent post.