Disclaimer - These are the calculations that I myself use, remember I am no expert and may be at times wrong, you are free to use these calculations and point mistakes.
Assumptions -
1. Loan Interest - 10.5 % pa calculated daily
2. Application done using ASBA therefore savings interest earned 4% pa calculated daily.
3. No tax outgo for the 4% earned interest, as interest upto INR 10k is not taxed as per current IT rules
4. Listing happens in 2 weeks - 14 days
Calculations -
Per Lakh Per Day = INR 18
= 100,000 X (10.5 - 4 ) /100 /365 = 17.81
Per Lakh Per IPO = INR 250
= 17.81 X 14 = 249.32
Full Application Per IPO = INR 500 (approx.)
In simple words - Post IPO if the difference between money earned after selling shares and cost of ipo shares is less than INR 500, I have made a loss.
Note - Remember apart from the transaction cost charged by broker I need to reduce the tax on profit (if any I make) that I have to pay the tax authority.
Disclaimer - These are the calculations that I myself use, remember I am no expert and may be at times wrong, you are free to use these calculations and point mistakes.
Assumptions -
1. Loan Interest - 10.5 % pa calculated daily
2. Application done using ASBA therefore savings interest earned 4% pa calculated daily.
3. No tax outgo for the 4% earned interest, as interest upto INR 10k is not taxed as per current IT rules
4. Listing happens in 2 weeks - 14 days
Calculations -
Per Lakh Per Day = INR 18
= 100,000 X (10.5 - 4 ) /100 /365 = 17.81
Per Lakh Per IPO = INR 250
= 17.81 X 14 = 249.32
Full Application Per IPO = INR 500 (approx.)
In simple words - Post IPO if the difference between money earned after selling shares and cost of ipo shares is less than INR 500, I have made a loss.
Note - Remember apart from the transaction cost charged by broker I need to reduce the tax on profit (if any I make) that I have to pay the tax authority.
Disclaimer - These are the calculations that I myself use, remember I am no expert and may be at times wrong, you are free to use these calculations and point mistakes.
if possible, please throw some light on rights issue.
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