@prameshp1 Depends- QIP if used effectively for accretive projects is good for all parties involved. Including the new shareholders.
+QIP is also sometimes a hint towards an overvalued stock, which can be a good opportunity for existing investors to exit
+QIP is also sometimes a hint towards an overvalued stock, which can be a good opportunity for existing investors to exit
@prameshp1 Eg:- Dnl Qip's for Phenol capex was a masterstroke in hindsight given the execution
Pi Ind's Qip for Pharma acquisition hasn't turned out the way it was supposed to be. Given they haven't been able to acquire anything
Pi Ind's Qip for Pharma acquisition hasn't turned out the way it was supposed to be. Given they haven't been able to acquire anything
@prameshp1 Like other things in business, one has to see where Qip money is going to go. One of the overhangs on Saregama stock is the return ratios have b been diluted post QIP, as managements also wait for valuation to make sense for acquiring
@prameshp1 Finally,
Diluting Equity often makes sense in case if one doesnt want to raise debt for a venture even if some uncertainty is involved.
Why risk blowing up the BS by taking debt? and impair your terminal value
Diluting Equity often makes sense in case if one doesnt want to raise debt for a venture even if some uncertainty is involved.
Why risk blowing up the BS by taking debt? and impair your terminal value
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