Money Tree

On 10th April Shivalik Global Ltd. was listed in two categories. One Fully paid up (Rs. 10) and one partly paid up (Rs. 5) The fully paid up scrip (issued at Rs. 60) was closed at Rs. 82.55 and the partly paid up scrip (issued at Rs. 30) was closed around Rs. 28. Logically the partly paid up scrip should be around Rs. 40 but perhaps the market has discounted the time involved in paying up the call and making it fully paid up.

But still we believe that in todays efficient markets some equillibrium will be established and one can buy the partly paid up scrip at this price. Also one can take delivery of the partly paid up scrip and pay the call to make it fully paid up, the fully paid up scrip will cost you Rs. 58 (28+30) and the current market price is Rs. 82.