Looking for some help in understanding demerger. Can someone please explain what happened with SUVEN ?
I see the stock dropped about -90% of it value and in the news there’s this article: https://www.moneycontrol.com/news/business/markets/suven-life-sciences-shares-trade-ex-demerger-record-date-on-jan-22-4839951.html
What does this mean? Is there any action I need to take as a share holder? Any help appreciated.
Thanks,
In case of a demerger, shareholders in the existing company as on a given record date are entitled to receive shares of the demerged unit. If you held one share of Suven Life Sciences as on Jan 22, 2020 you will receive one share of Suven Pharmaceuticals which will list on NSE and BSE.
As a shareholder, you might want the cost of acquisition of Suven Pharmaceuticals for accounting purposes. You can check this corporate filing on BSE to allocate a cost to your holdings in the following ratio:
This is just an accounting treatment to get the cost of acquisition for taxation purposes. However, to answer your question briefly, you don’t need to take any action as a shareholder. The company will announce a date by which the shares of Suven Pharma will be credited to your account and subsequently listed. You can then choose to stay invested in the company or sell your investments.
Can someone help me in finding the cost of acquisition for HSIL and SHIL after demerger?
Hi @mohitmehra ,
I held Suven life science share from May 2019 but after demerger haven’t received any shares of Suven pharmaceuticals. Any idea what could be the reason??
