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Bad Bank, Rights Issue, Ten Demons & No Cost EMIs


In this week’s edition, we have

  • 3 research articles from Capitalmind
  • Capitalmind Fundas post – How no cost EMIs work?
  • 5 best conversations from our slack community
  • Tweet of the week
  • 5 interesting reads curated especially for you

Explaining the “rights issue” of shares, the right way. ✌🏼

Reliance Industries did India’s largest-ever rights issue of ₹ 53,125 crores. In Oct 2021, Bharti Airtel announced a rights issue of ₹ 21,000 crores.

Those are indeed big numbers but what are these rights issues all about? This post is a jargon-free explainer that answers all such questions:

  • What are Rights Issues?
  • Why do companies do Rights Issues?
  • Why are they only available to existing shareholders?
  • What should shareholders consider before exercising their Rights Entitlement?
  • How to apply for Rights Issue?

[Read] Everything you need to know about Rights Issue of shares

[From Archives] Dussehra special: Fight those demons 🥋   

Dussehra is about the victory of good over evil. Not necessarily is the winner always good, or the loser always bad, as indeed there are temples that worship Ravan as well. Every person has flaws, and there’s a bunch of demons inside of us that we fight. Dussehra is about the number 10 – the 10th day of victory over a Ravan who had 10 heads, etc. So we’ll stick with that theme.

Here are the 10 of our own demons we must regularly fight in the investing world.

[Read] 10 Demons We Must Fight in the Investing World

Wait, didn’t we need a good bank? 🏢

India’s ragpickers are an incredible story. They sift through garbage, no matter how foul, and pick out things they find useful enough to sell for money. Ragpickers provide serious value to society by reducing landfill sizes and by the very concept of reuse. If it weren’t such a wretched life, rag-picking would be a more honorable profession.

India’s biggest and most honorable ragpicker is here. It’s the “Bad Bank”, to be known, in traditionally uncreative Indian public fashion, National Asset Reconstruction Company Limited (NARCL).

Here’s what we at Capitalmind think of this concept.

[Read] Understanding India’s Bad Bank

[From Archives] Capitalmind Fundas 💡

As the Diwali festive season begins and so will all the bumper sales. The biggest feature that makes big purchases easy is No-cost EMIs. This is when you are told: take this product at 0% EMI for six months! And you wonder why.

Here’s is an explainer laying out the math behind this “no-cost” deal.

[Read] How do No Cost EMIs Work?

[Premium] School of Slack 😎

  • Deepak Shenoy does a quick thread on the latest inflation data. [link]
  • Uncle Theta trade updates [Wednesday trade] [Thursday trade]
  • We discuss two portals for direct mutual funds and some more FAQs. [link]
  • PSA: Turn off International transactions for credit & debit cards when not traveling. [link]
  • The unintended consequences of a bull market. [link]

Tweet of the week ❤️

Bad Bank, Rights Issue, Ten Demons & No Cost EMIs

[Read more] About Change and Disruption from Deepak’s pen: Following the Disruption

Links we Like

In this section, we bring you curated articles from across the internet that we found interesting:

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Bad Bank, Rights Issue, Ten Demons & No Cost EMIs

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