The open offer of Shree Rama Multi-Tech Limited closed on February 04, 2014 and the money for accepted shares was credited on February 14, 2014. After a series of lower circuits , the stock price settled at 3.10 and I sold all my unaccepted shares on February 28, 2014.
You may access my earlier post on this case here.
The acceptance ratio for the offer turned out to be 36.35%. The ratio turned out to be poorer than both the ratios of 54% and 43% which I thought to be highly probable and worst case scenarios respectively. So, in effect a far larger number of shares were tendered in the offer than what I had expected.
The probable reasons for the lower than expected acceptance ratio could be :
(1) my overoptimism about a higher acceptance ratio in the first place
(2) lower number of "dead" or "brain dead" investors
Conversely, I was able to sell the unaccepted shares at Rs 3.10 which was far higher than Re 1 which I had inbuilt in my workings.
Overall, the trade resulted in a marginal profit of 2.33% after all costs; over an average holding period of 25 days.
Was this trade a disappointment ? Well, I don't think so. The returns may not have been in line with my expectations but it was a beautiful trade. A set of such opportunities over a lifetime should result in very satisfactory returns in aggregate.