Mothersumi demerger

Hi , any one clarify these ,
Mothersumi announced demerger updates, so will i get 1 share of new MSWIL for 1 share of current mothersumi ?
will mothersumi be suspended from 17.1.22 till i get new shares ?
when will i get new MSWIL shraes and when can i trade that new shares ?
will the cmp same as mothersumi ?
what if sell mothersumi on 17.1.21 , if hit my target price ?

Motherson Sumi will not be suspended. You will get 1 share of MSWIL for every share you hold in Motherson Sumi.

No ETA on this.

Price won’t be same as MSWIL.

You will still be eligible for corporate action as you will be selling shares on record date.

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@ShubhS9 Thanks a lot for your replies.

I had pledged mothersonsumi for margin. Now that the demerged entity got listed today, will shares of mothersonsumi wires be pledged automatically?
I doubt it will be because usually exchange takes times to include the stock for pledging post listing.

If its not pledged, why is it not available on kite today for sale.

Kindly clarify @ShubhS9

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Facing the same issue. Got a canned response on the support ticket which was then closed summarily

Not at all surprised.

Jason, could you please DM your Client ID. Will have this checked.

Can you please DM the ticket number. Will have this checked.

Resolved now. The ticket was #20220328528114

Its now unpledged. Got msg from cdsl.

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Does anybody know how is Cost of Acquisition divided among demerged entities?

Let’s say I’m holding 400 shares of MOTHERSUMI before ex-date with a total investment of Rs. 87,635.5 [Buy Avg: 219.09]

Refer to the “Cost of Acquisition” or the table below:

Name of Company Percentage of Cost of Acquisition of equity shares in Demerged and Resulting Company
Motherson Sumi Systems Limited // MOTHERSUMI (Demerged Company) 89.47%
Motherson Sumi Wiring India Limited // MSWIL (Resulting Company) 10.53%
Total 100%

Below is the calculation to know how it’s divided (Equation 1):

MOTHERSUMI: 89.47% of Rs. 87,635.5 = 78,407.48185

MSWIL: 10.53% of Rs. 87,635.5 = Rs. 9,228.01815

As per the circular,

Equity Shareholders of the company shall be issued and allotted 1 (one) Equity Share of Re. 1 (Indian Rupee One) each of Motherson Sumi Wiring India Limited for every 1 (one) Equity Share of Re. 1 (Indian Rupee One) each of the Company

This simply means I’m allotted 400 shares of MOTHERSUMI and 400 shares of MSWIL (Equation 2).

Adjoining Equation (1) and Equation (2) for calculation on buy average:

MOTHERSUMI Buy Avg = 78,407.48 / 400 = 196.02
MSWIL Buy Avg = 9,228.02 / 400 = 23.07

Hope this helps. :slight_smile:

Perfect. Thank you so much. I wasn’t aware that company would give the break up.