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. 