Shares of Kesoram industries Ltd had undergone a scheme of demerger with Ultratech cement & record date for which was 10 March 25. And 1 share of Ultratech cement was allotted for every 52 shares of Kesoram industries Ltd held as on record
date.
Today I have received email from Kesoram industries Ltd regarding open public offer by Frontier warehousing Ltd (acquirer) for acquisition of 26 % equity shares of Kesoram industries Ltd. On receipt of email I checked that my demat account still shows 260 shares of Kesoram industries -BE which I thought had been adjusted against allotted 05 shares of Ultratech cement Ltd.
Request kindly inform what it means in regards to 260 shares of Kesoram industries -BE still showing in my demat account & what ideally should be done with these shares as I have already received 05 shares of Ultratech.
Attached letter of offer for reference please.
Kesoram_Leter of Offer_NOTICE.pdf (619.4 KB)
The 1:52 demerger ratio is correct, you were allotted 1 UltraTech share for every 52 Kesoram shares held as on the record date.
However, in a demerger, your original Kesoram shares are not cancelled or adjusted. You continue to hold your 260 Kesoram shares, and you received 5 UltraTech shares in addition to them. So nothing is missing or incorrectly adjusted in your demat account.
The email you received is for an open offer to acquire Kesoram shares at ₹5.48 per share. As a public shareholder, you may choose to tender your 260 shares during the offer period if you find the price attractive; otherwise, you can simply continue holding them.
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