What happens to stock in case of demerger?
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What happens to stock in case of demerger?
Usually, when a company demerges its business, it announces a distribution of shares from the new company for its existing investors. This also leads to a fall in the price of the company’s own stock.
What will happen after Reliance demerger?
RIL will hold the O2C business as a fully-owned subsidiary. It has stated that the management control will continue to remain with itself. According to RIL, the consideration in tax neutral since it is being transferred at tax net worth. In other words, there is unlikely to be any cash impact for RIL from the demerger.
Will RIL split?
Find the split ratio of RELI for a selection of dates. The data can be shared or downloaded….RELI Splits.
| Split date | Split Ratio |
|---|---|
| May 13, 2020 | 1/900.1 Stock Split |
| Sep 07, 2017 | 1/2 Stock Split |
| Nov 26, 2009 | 1/2 Stock Split |
| Nov 05, 1997 | 1/2 Stock Split |
What is O2C in reliance?
Reliance currently has three verticals — oil-to-chemical (O2C) business that houses its oil refineries, petrochemical plants and fuel retailing business; digital services that comprises telecom arm Jio; and retail including e-commerce.
How do you calculate capital gains on demerger?
Cost of acquisition of various shares after the demerger transaction: To calculate capital gains when the shares are sold, a vital piece of information is the cost of acquisition….Demerger- Tax Implication on Individual.
| Share Purchased | Share Value |
|---|---|
| Bajaj Holding Investment Ltd. (56.5\% of Rs. 31,000) | Rs. 17,515 |
| Bajaj Auto Ltd. (22.1\% of Rs. 31,000) | Rs. 6,851 |
PREMARKET
| Bonus History | ||
|---|---|---|
| Announcement Date | Bonus Ratio | Ex-Bonus Date |
| 21/07/2017 | 1 : 1 | 07/09/2017 |
| 07/10/2009 | 1 : 1 | 26/11/2009 |
| 13/09/1997 | 1 : 1 | 27/10/1997 |