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


#13

Hi,

I have recently purchased around 100 Arvind shares @ Rs. 98 , please let me know what will be case for this. will this shares also get divided into Arvind Fashions and Anivesh engineers?


#14

@ranagen : 27 November was last date to buy Arvind ltd as a combined entity with arvind fashions and anivesh engineers. Arvind ltd is trading at trim down price in truncated form from 28 November.


#15

I have purchased 17 shares of arvind ltd @ Rs 320 before record date and 23 shares @ Rs 100 after record date in december. I have got an email from arvind mentioning the fractions which will be received from 17 shares. But I am confused what will happen to my remaining 23 shares which i have purchased in december after post record date.


#16

@Rajadatta_Sarwade : you will get the eligible shares of to be listed d-merged companies in due course on your 17 shares purchased on or before November 27 ,thus you will have shares of Arvind plus 2 more companies .
23 shares you bought after November 27 will be 23 shares of arvind only .


#17

@Arthi_Mithra : old name of Anvenshan heavy engineering was Anup engineering ( Ahmadabad listed )and before this exercise of amalgamation and name change it has splitted face value from 100 to 10 and also gave 300% ( 3:1)bonus . right now unquoted share dealers are buying this share around 225-250 .


#18

@sahil_gumber : Anup engineering is listed from 01 March and Arvind fashion too received sebi approval and should list within 2-3 working days . Last day price of combined Arvind was 310 per share. Assuming one bought 135 shares means total investment 41850. Today Arvind 135 shares are worth 10600 and 5 Anup engineering worth 2375 (SO ) 27 Arvind fashion should give 28875 to cover the cost without considering 3 months time value of money for listing.


#19

I have 2 shares of ANUP (showing ANUP-BE in Kite, and ANUP-T in Console) and 15 shares of ARVINDFASN showing as discrepant holdings.

What should I enter as the Purchase Date and Average Price while posting Discrepant trades.


#20

Its not really required to enter any Date or Price, just keep it as it is. This usually happens after demerger.