Arvind share de-merger


#1

Hi all,

There is a news of De-merger of Arvind shares, I hold 3 shares of arvind ltd. Do I have any benefit from this de-merger? As everywhere benefit is mentioned about minimum 5 shares of Arvind ltd.


#2

@Alok_Mane : you will get cash credit of 0.6 fraction of Arvind fashions and 0.11 fraction of Anivesh engineers in about 60-80 days.


#3

Thanks for the quick reply!


#4

I have bought 100 shares of Arvind @312. What will be the value of that after demerger?


#5

Hope you know the ratio in which you will get additional shares of Arvind fashions and Anivesh engineer which will be listed after some regulatory formalities. the share of Arvind is trading in truncated form from November 28. Listing price of these 2 companies will depend on market behavior at the time of listing which is time taking process as these 2 companies will seek direct listing without an ipo.


#6

What will de value of cash return ?
On market price or face value or listed price of that company ?


#7

@Arthi_Mithra : all fractional shares will be transferred to a trust which will club them and sell at nse/bse few days after listing. . the net money received from broker will be distributed accordingly. you will get an inland letter explaining the details of sale like date of sell ,selling broker etc…


#8

So de merger makes to loose the investment ? Its no wonder its a loose to the shareholders i guess
I have 100 shares @340 now the share is 100x100+250x20+11×4=15,044
My investment 34000
Lost half my capital
Who is benefited here?
Compnay duped all de shareholders


#9

your cost of 100 shares of Arvind ltd is 34000 ( last traded WAP of combined entity was 30900) so based on last days price your purchase is negative by 3100 .however please note that these are just notional calculations we are doing. we do not know at what price share of other 2 companies will list .
34000 minus 10300 means you must get 23700 from 20 Arvind fashions and 3.70 Anivesh engineers without even counting time value of money invested till listing which might take about 45 -60 days or so and market behavior risk.


#10

Am ok with the nominal loss of 3100
As per ur calculations 23700 notional amount would be recovered from those two companies ?
I am really concerned if i would get atleast half of 23k


#11

there is no option absolutely no option till the share of these 2 to be listed companies are listed .however my guess is that if not full 23700 you should be in position to get most of it . i would have liked to say more than your investment but looking at not so good reputation of management , i am forced to say most of your investment.


#12

Am so thankfull for ur reaponse thanks so much
I dnt know ur name but thanks for explaning to me so clearly
Wish i could learn more from you