Sunday, March 14, 2010
GRASIM SAMRUDDHI DEMERGER: A COMPLICATION, A CONFUSION.
Grasim has declared the demerger of Samruddhi cements, its ratios and demerger process has become some what complicated and confusing for any common shareholder, here I have tried to elaborate some of its key points –
The demerger scheme says every shareholder of Grasim will get 1 share of Samruddhi. Now, Samruddhi has 26 cr shares, with the Face Value of Rs.5.00, Book Value of Rs.250. Grasim will transfer Rs.2100 cr of debts to Samruddhi.
Grasim will hold 65% in Samruddhi & 35% of Grasim shareholders will hold 35% in Samruddhi.
Samruddhi will be listed in stock exchanges hence, providing exit option to its shareholders, further it will be merged with Ultra Tech Cement.
The record date for this merger has been set as 1st October 2009,
So, a share holder of Grasim will get 1 Samruddhi for every 1 Grasim held,
And he will get 4 Ultra Tech Cement shares for every 7 Samruddhi he holds as on record date declared by Ultra Tech Cements. So the price of Samruddhi will depend on the last closing price of Ultra Tech Cements.
On 10th March 2010, A block deal of 100000 shares of ULTRA TECH CEMENTS at Rs.1103/share was done.