Is SPRIGHT RE providing a profitable arbitrage opportunity?

General
1

I was doing some research and found this opportunity which seemed too good to be true. Can anyone double check and suggest what am I missing?

SPRIGHT-RE Per RE Price: Rs. 6.15
Additional Price I have to Pay to Obtain the SPRIGHT Share via Rights Issue: Rs. 13.4
Current SPRIGHT Share Price: Rs. 50.42
Total Profit Per RE: Rs. 50.42 - (Rs. 6.15 + Rs. 13.4) = Rs. 30.87

Is this calculation correct or am I missing something?

(Assuming: the SPRIGHT share price won’t move much by the time the RE shares are credited)

2

bumping up, any ideas anyone?

3

IIUC, this is the Incorrect assumption.
The price will trend downward due to excess sell orders at a discount, until there is no arbitrage left.

4

So someone should short its shares? Cause there is this defenitive event here?

5

OK. :slightly_smiling_face:
So, how would you go ahead and “short this stock” ?

What actual financial instruments / orders exist to “short this stock” ?

6

Spright Agro (Mcap 2700 cr)

Figures for FY24

Sales - 72 cr
Employee cost - 16 lks
Finance cost - Nil
Depreciation - Nil
Other exp - 60 lks

Fixed assets - Nil
OCF - Negative 21 cr
Cash - Nil

Co raised 55 cr thru warrants & is raising 45 cr thru rights issue.

Be cautious.

  • last Date for receipt of applications in the ongoing “Rights Issue” of the Company has
    been extended from Friday, July 12, 2024 to Tuesday, July 23, 2024. Accordingly, the last date for OnMarket Renunciation for Rights Entitlement has been extended from Monday, July 08, 2024 to Tuesday, July 16, 2024.