Today itself i have observed an unusual stock split by APCOTEX INDUSTRIES whereby the company is splitting its 5 rs face value of share to rs 2 which means 1 share of existing face value will be swapped for 2 and half shares of new face value. will result in lot of fractional shares which will be clubbed and transferred to a trust for selling through a bse/nse broker for cash credit to erstwhile fractional holders.
Wondering how one ended up with FV of 5 in first place, quite unusual.
Face value was 10 which was splitted to 5 in the year 2013.if my memory serves me good , these shares were given to Asian paints shareholders and the company was known as Apcotex latex .
I think basically using this promoters are able to sell 20% without actually declaring to do so … the fractional part will apply to promoters as well. Once moved to the trust it will be sold (sometimes with super high costs) and given back to the shareholders.
It is not so huge like 20% but very small fraction for promoters like Atul choksey hold 31,10,700 shares which will not result in any fractional shares wherein for Parul choksey who hold 2911761 shares will result in 0.5 fractional shares . what-so ever may be your holding maximum fractional share will result in 0.5 share.
it is bit higher for very small shareholders like 1/3/5/7 /9//…so on share holders will result in 0.5 fractional share .
Isnt it for every share held there will be a fractional unit which gets into the trust ?
no , like the promoter Atul choksey hold 31 lakh 10700 shares and the same will turn in 77 lakh 76750 shares without any fraction wherein if you hold 1 share you will have half share as fraction after split …same way 3/5/7 /25 shares .
Humm … I see.
interested readers might go through the concall summary of Apcotex Industries for Q4FY20.
Post covid outlook for the footwear industry has improved as the company supplies to the mass segment footwear where customers are expecting better demand.