Rebalance Updates: SHILPI

The stock Shilpi Cables Technologies Ltd was part of 4 smallcases: Digital Inclusion, Magic Formula, Buy the Dip and smallcase Infra Tracker

The company was a perfect match for the themes & strategies in which the stock was included, on the basis of both fundamental and technical indicators. However, recently the stock has been hitting lower circuits and there wasn’t much news in the market. We generally don’t send rebalance updates on the basis of single stock under-performance or out-performance and only consider smallcase criteria for the same. But in the case of Shilpi, there were few major corporate governance related developments on Thursday which forced us to send a rebalance update

Here is what happened with the stock in chronological order –

29th Apr – Company informed the exchange that a petition has been filed against the company under section 8 & 9 of the solvency code by an overseas bank. Notice 1
1st May – Company provided a clarification against the rumors. Notice 2
4th May – Company informed the exchange that the National Company Law Tribunal has reserved its order on the petition. Notice 3
11th May – Company informed that its planning to give fully paid-up bonus shares to all shareholders. Notice 4
11th May – Company informed exchange that company secretary, compliance office, CFO and an independent director all have resigned. Notice 5, Notice 6, Notice 7

We are not pushing a normal rebalance update, as the stock is hitting lower circuit and exchange is halting the trading on a daily basis and orders will remain unfilled. In order to sell stocks hitting circuits, the following process is the best way –

1. Login to Kite after market close
2. Go to your Holdings tab
3. Find the stock SHILPI in the holdings list and click on Exit button, which comes-up when you hover on the same
4. In the SELL window, click on MORE OPTIONS at the bottom
5. Select AMO from the options available at the bottom and LMT from options available at the top
6. Enter the price at which you would like to sell the stock. Its better if you enter a lower price compared to the current stock price when the stock is hitting lower circuit, in order to increase the chances of selling

If you want to sell the stock, please place an AMO order as explained above

Also, do send us the trade details at support@smallcase.com – smallcase name, shares sold and selling price, once your order is complete on Zerodha Kite and we will update your smallcase accordingly to reflect this trade – so your constituents & returns are computed correctly

Contact us at support@smallcase.com for any other questions