I made 98.3% RETURNS after Learning this Simple Investing Strategy around Preferential Allotments

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Preferential allotment is the process by which a company raises money from a select group of investors by issuing new shares, often at a price lower than the market value. Over the past six months, more than 100 companies, including Vodafone Idea, IFCI, Adani Green, IDFC First Bank, Fineotex Chemicals, and Himadri Specialty, have raised capital through preferential allotments. Generally, preferential issuance of equity shares is seen as a positive signal to a company's growth prospects and this growing trend is what prompted me into investigating whether these allotments correlate with a surge in stock prices.

Ergo, I did 2 different data studies. The first used random companies (17 stocks) that had had a preferential allotment recently -- which showed a portfolio return of 137%. The second data study was specific to smallcaps and microcaps wherein I used data from Sovrenn's platform which showed a 98.3% annualized return. Essentially, preferential allotment information seems to presents a viable investment strategy with room for potential gains if coupled with due diligence and use established screening techniques to make informed decisions

👉 Additional Readings/Resources:

👉 Video Chapters:
00:00 Preferential Issuance of Equity Shares
01:57 What is Preferential Allotment?
02:51 How Companies Utilize the Fund Raise
05:59 SEBI Issue of Capital and Disclosure Requirements
07:25 Benefit of Preferential Issue to Retail Investors
08:52 Data Study 1 - 137% Return
10:35 How to Find Preferential Allotment Information
12:22 Data Study 2 - 98% Return
13:40 Shankar Nath's Viewpoint

#preferentialallotment #preferentialissue #stockmarketstrategy

Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

[shankarnath]

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[kasiramanv]

Wealth of useful information and tools for investors. This channel adds great value to the investing community !

[ashishasati]

Sir really awesome analysis....love you sir God bless you ❤️❤️❤️❤️❤️

[cryptowithkunal]

Nice video. The concept was very interesting and also got to know about the preferential allotment. Thanks

[rishabhmodi]

Pref investing is the strongest strategy I have ever seen in the stock market 🔥🔥

[vishalshah]

This episode is very very very very very very very very very very very very very very very very very knowledgeable
Thank you 🙏🙏🙏🙏🙏

[financeconcepts]

My time's preferential allotment is to your channel 😊

[amish]

Thank you for sharing this with us. was very informative. 🙏🙏🙏

[NannaChappava]

As usual Excellent Information, Thank you Shankar

[aishwaripandey]

Wonderful Information... thanks sir for sharing...

[rpsingh]

Onnce again useful info shared... Thanks for this ❤

[dhrub]

This quality comes out when the person is dedicated and has a strong work ethic. Thanks for sharing

[thepowerofdisciplinedtrading]

excellent information thanks for sharing this....

[sirajmultani]

straight forward, no nonsense wealth of knowledge, please keep doing your hard work Shankar Nath, we are here to support. Thanks you so much for making so simple video which actually converts the knowledge to strategy !! Hats Off !!!

[mayankjain]

Shankar Sir, First of all, great video and thank you for sharing your knowledge with us. One Question, What should be the ideal holding period of a share which has preferential allotment? Is there any number of days/weeks/months you came up with during your Analysis?

[Mohit-uvcs]

Really amazing video about Preferential.

[rahulgupta]

You are the Mr. Dependable of Fin Influencers, a true Mr. Dravid. Your research and strategy are rock solid, showing us that the stock market isn't gambling but a process.

[kavinkumar]

Thanks for the video, please make video on the cashflows and asset turnover.

[chennakeshbabu]

Sir, its really a great view and very honest efforts in sharing knowledge, I have motivated lot with your knowledge sharing on stock market and started investing by copying few stocks that you mentioned in your videos, I do see a great returns which are beating index

[viks]

Lot of research goes in such videos, many thanks Mr Shankar