Ask Mint | On Investments

Ask Mint | On Investments

I have 2,450 shares of Essar Steel Ltd which got delisted. What should I do with these shares? Are they of any value? How do I trade them?

—Dinesh Lahoti

The firm had come out with a buy-back option for its stock, but it expired a long time back. You may contact the company in this regard. However, as such the stocks are not tradeable and hence are illiquid.

What’s your view on Mount Everest Mineral Water Ltd? Does it look like a good long-term bet?

—Vinod Kannan

Mount Everest Mineral Water is in a down phase since 22 May 2008. The stock may yield you decent returns in the long term. However, I feel you may have better investment options for the long term compared with this one.

We hold 10,000 JCT Ltd shares purchased five-six years back @Rs22 per share. Should we sell it or keep it?

—J.S. Mehta

Since the stock is currently trading at very low prices (BSE: Rs3.16), I suggest you hold it currently. However, you may consider exiting this stock in its next leg of recovery, which would take it up to Rs7 in a period of around a year.

I bought 100 shares each of both Reliance Capital Ltd and Indian Oil Corp. Ltd @Rs868.50 and Rs659.40 per share, respectively, on 26 October. Could you please advise me on these shares, as they have gone down too much in a week’s time? I am a long-term investor.


Reliance Capital is a good long-term bet. So if you are a long-term investor, you do not have to worry much as you will be able to make decent profit through this investment. Regarding IndianOil, you must have got bonus and the current prices are adjusted for the bonus issue. So again, you do not have any big losses in this stock either. Please hold both the stocks with a long-term perspective (one year and above). I hope you will be able to get decent returns.

I wish to secure the future of my six-year-old daughter. Kindly advise investment options.

—Rakesh Verma

You have not mentioned your investible surplus, risk profile and tenure of investment. In the absence of such information, it would be difficult to chalk out a specific plan. However, you may invest 25% of the sum in child benefit insurance policy, 45% in mutual funds—balanced schemes—and 20% in equities, preferably through good quality initial public offerings such as government offerings in coming months, and 10% in debt schemes.