National Grid Share Discussion Threads

[hiddendepths] 23/5/2024 11:38

The lapsed rights usually seem to be sold at a disappointingly low price as the sellers are forced! I'm sure the underwriters are licking their lips!

[viscount1] 23/5/2024 11:36

It's worth looking at selling on the market but from memory the bid/offer spread is often terrible so watch that.

[anhar] 23/5/2024 11:35

Lapsed npr sales will be at about the final closing market price before they become fpr (fully paid rights). So yes if you don't intend to subscribe, you can simply do nothing and receive the value of the lapsed rights if they have any by then - ie anything over 645p as mentioned above.

So those not intending to take up their rights at all have two options. Sell the npr in the market or do nothing and wait for their lapsed rights disposal. It's not possible to say which might be more rewarding. The only point is that selling in the market means you know the price achieved, whilst waiting for the lapsed money does not offer the same certainty until later, which could be higher or lower.

[cyfalafwr] 23/5/2024 11:33

They did a share consolidation back in May 2017 ,11 for 12 but also paid a special dividend then. My calculations show a return of 44% in approx 11 years , as I held from 2013 , if you are an income investor . Tax free in a share isa. Time for a change and re-invest elsewhere. Good luck to all who stay in.

[hiddendepths] 23/5/2024 11:25

GARY - the record date is 20th May. That's the date that is used for the documents to be sent to holders, usually through their brokers. Those documents will go the wrong place if the holder sells after that but before the xr date - but if you are such a seller you're not entitled to those rights and it's up to your broker and the buyer's broker to ensure the purchaser receives the rights entitlement. In other words the record date is an administration date and has no real relevance to the shareholder unless the brokers are asleep on the job!

The xr date is what matters to shareholders.

[viscount1] 23/5/2024 11:23

Yes, providing the rights had value (i.e. a little above the offer price of 645).

[bountyhunter] 23/5/2024 11:19

viscount
>> just let them expire and get cashed out

Do you mean anyone letting the nil paid rights expire will get a cash credit from NG?

[hiddendepths] 23/5/2024 11:16

If the shares close tonight at 1006p, the theoretical ex rights price tomorrow morning will be 924p.

[hiddendepths] 23/5/2024 11:15

GARY - if you look carefully that's not quite what they've said! Ill explain shortly. I used to be a broker btw

[cyfalafwr] 23/5/2024 11:10

Held since 2013 for divis. Sold out this morning to reinvest in another blue chip that pays a reasonable divi. Any ideas , not looking for investment advice just a starting point for my research.

[garycook] 23/5/2024 11:08

Very confusing. So why have NG stated that to be eligible for the Rights. You have to be on the Share register at close of business Monday 20th of May !

[feddie] 23/5/2024 10:59

From previous experience (Not from any official source for this case): You may be able to sell the Nil Rights, but brokers generally will charge a larger than standard trading fee. If you let the rights lapse, you will not get any payment. That’s why they are named “Nil”. Unfortunate as it may be, the rational action is to exercise your allotted rights. If you don’t want to increase your position, you can sell the new shares once they start trading.

[viscount1] 23/5/2024 10:50

You will not lose money if you do not participate: you can sell your nil paid shares or just let them expire and get cashed out. Your shareholding will be diluted though, which may or may not matter.

I am not going to participate because I already have enough NG and could use the cash elsewhere.

[anhar] 23/5/2024 10:49

One unwelcome effect of the rights, for me as an income investor, is that following the issue the divi will be "rebased" (ie. cut) by about 15% due to the increase in the number of shares. They then intend to grow the rebased divi by CPIH as before.

I've yet to decide whether to take up the rights or sell the nil paid in the market. One can take a middle way by selling some npr and taking up some rights. There's a break-even point where the cash raised balances the cash cost, depending on the market price of the npr against the 645p rights cost.

[fludde] 23/5/2024 10:18

No, it's based on 20th May holdings.

[garycook] 23/5/2024 10:12

If you Buy NG today. Do you get the Rights Issue entitlement ?

[spranson] 23/5/2024 09:57

Will I have time to take up the offer on Tuesday? Losing network at a bank holiday event before then

[skinny] 23/5/2024 09:28

Since when did logic come in to election perceptions.

UU. -5.9%.
SVT -6.06%.
CNA -2.85%.

[pierre oreilly] 23/5/2024 09:23

Logically, with both labour and the Tories equally left wing, micro managing, high tax, high control, over regulation and ubergreen and uberwoke, there shouldn't be a labour fear drop imv.

[skinny] 23/5/2024 09:17

The 'Labour' effect is (obviously) hitting all utilities this morning - particularly water.

[utyinv] 23/5/2024 09:16

Very naughty, with the share price falling up to results its obvious that Pettigrew and Co has leaked the rights issue to the markets.

[fludde] 23/5/2024 09:13

Shame I didn't sell yesterday and buy back today and still have the rightscissue option. Have to buy the rights issue to pretty much break even now. Assuming Barclays give me the option in time of course!