Enquiry regarding eps

I understood your query in this form.

                                               2013-14             2014-15

Equity Issued                             100                    100

Debentures                                100

Bonus Shares                                                        50

Debentures converted                                          100

Total shares circulation              200                    350

If the market is pricing your share at 2 it means the share price should be 400.Now after events are triggered ( debenture/Bonus) ideally share MCAP will be 500 ( adding the portion of debenture debt to capital +original mCAP) but distributed over 350 shares

A disclosure will be required in your financial statement of dilution which will happen from stock of 200 shares to 350 shares.The EPS or profit available potentially for distribution for new shareholders will now get reduced.The impact of this dilution will be 11% to existing shareholders with the debenture trigger.

to further expand this

                                                     2013-14          2014-15

Normal Profit earned                        200                  200

Savings on interest of debenture                               10  ( assume deb int at 10%)

Tax on debenture                                                        (3)

Profit available                                 200                 207

EPS                                                      1                 0.60   ( on 200 & 350 share in circulation)

Pre dilution for existing shareholder                       0.82     ( since bonus to current shareholder)

MCAP                                            400                  500

Interest sacrifced by                      250                  350

 current share holders                   1.60                 1.43     ( Impact  1.43/1.60) as 11%                                         

i have a share transfer deed stamped 2012 purchesd the shares in 2013 but could not get i the shares transfered. transfered.. nin my name in 2015. if i sell these shares now in 2015 i have got the fresh transfer deed and got the shares transfered in my name in sept 2015.if i sell these shares in oct 2015 will i get advantage of long term capital gain.

When you got the share,do you have a brokerage contract with you which shows STT paid on this transaction in 2012.Secondly have you made payment to the Broker by way of cheque.Were transactions carried through official stock exchange.All those details will be required.