Caveat: I hold Jain irrigation dvr, Tata Motors Dvr, and of course Coromandel International…

Equity markets keep giving you many trading and arbitrage opportunities. We got a lot of arbit opportunities when 2 companies were taken over by Coromandel International – when it took over 2 companies. One was a chemical company and one was a fertilizer company. Happily I made about 24% on the arbitrage opportunity. I sold Coro and bought the smaller companies.

Everyday I used to feel that I could not get more shares, but I constantly got arbitrage opportunities, and I took them.

The other arbit opportunity was when I sold Jain irrigation share and bought its DVR. It continues to trade at a discount, but for me it does not matter. My dividend yield was much higher. Now I am sitting on nice profits in the DVR.

One more company which I like – and is always available at a discount is TATA INVESTMENTS Corporation. It has a NAV of 1200 and WAS available at 589 today (29 09 16). I am an old shareholder – and my cost should be fuzzy – I guess it could be sub 200 for sure. I love the discount and the dividend yield…so bought more and enjoyed the dividend.¬†

Of course there are other companies too…but one which really stands out is TATA MOTORS. The dvr (differential voting rights) of Ta Mo did not matter to me at all. When I sold 5000 shares of Ta Mo..obviously I missed the dividend when they skipped dividend.

HOWEVER, this year my dividend yield is double – and I had got Ta Mo Dvr against my ¬†shares…of Ta Mo. And I have no use of the voting rights…(I got 2x dvr for selling x shares)…so my dividend yield is double and the dividend amount is also double…

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  1. Thanks for the share on Tata Investment Corp. Post this blog info, it has already jumped to Rs 615!! Is it true that all holding companies are subject to such steep discounting wrt to investment value? What could be the discount level till which it’s worth accumulating it? (in comparison to other such investment companies).

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