Has the ratio been announced to calculate the the acquisition price of AB Capital post the Grasim demerger.
Aditya Birla Nuvo merged with Grasim and the financial services division Aditya Birla Capital (formerly Aditya
Birla Financial Services Limited) was demerged and listed on the bourses on September 1st, 2017. Eligible shareholders of Grasim received 14 shares of ABCL for every 10 shares held.
Post the demerger this is the basis to calculate the cost of acquisition of ABCL.
| Name of the Company % of Cost of Acquisition of Grasim’s Equity Shares | % of Cost of Acquisition of Grasim’s Equity Shares |
|---|---|
| Grasim Industries Limited 94.66 | 94.66 |
| Aditya Birla Capital Limited 5.34 | 5.34 |
| Total | 100.00% |
The cost of acquisition of equity shares allotted in ABCL will be 5.34% of the total cost of
acquisition of the equity shares held in Grasim prior to the demerger. Hence 5.34% of the actual cost of 1 (one) equity share of Grasim would be the acquisition cost for 1.4 equity shares of ABCL.
- The holding period (based on the date of purchase) for both the stocks will remain the same based on the purchase of the original Grasim. So if it was long term before, it will continue to be long term for both Grasim and Aditya Birla Capital (ABCL).
- The demerger won’t be taxed. The sharew won’t be considered as you selling the original and getting the new shares.
Use this sheet to calculate your price
Here is the link to the exchange circular.
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