Iam seeing a more companies coming with De Merger business..
I want to know some info on De Merger business. Lets say, a good company with good fundamentals in terms of business, revenues etc.. also, doing good movements in market. Is it advisable to buy those scripts. Defently answer is YES, if that script is behaving very well in the arket, but my dilemma is that, we will not be knowing the exact movement on the script after de merger for bpth existing script and also for the new script which will list from its Demerging business.
What you Guys feel about that.. Also, i think if both the scripts does a above average Job then we will be in double position right..? i.e) X quantity in one script will become 2X (Including both scripts).
Any views will be highly appreciated..
Samir, this is in additional to Adlabs and NDTV..
Thanks...
now it is the turn of demerger, series, again after few years, they want to consolidate and start beginning merger series.. i find no logic in doing the both and need of the same....
As you said, now its De Merger series happening across the sectors or companies.
As far as i know, Merger is something like postive to the script and De Merger is negative in terms of movement in scripts.
If the company is involved in demerging activity, then obviously the momentum in the script will slow down as happening to Adlabs (but not completely).
Even after the de merged script(s) listing then stocks may give slow movement but that negative impact will be for few weeks or months only right..?
Pls correct me if iam wrong.
Once the momentum got into the hand os the scripts, we will be having 2X quantity instead of X quantity had earlier... I see this is an positive impact to the investors in the view of minimum 4/5 months.
you are right... demerger will give good returns for the promoters/stake holders after every one forgets about the demerger. it will become a long term bet.. in my view...
A shareholder of Reliance Industries has moved the Supreme Court seeking compensation of around Rs 20 lakh from the company for failing to transfer in her name 25 shares she had bought in 1994.
In her appeal before the Supreme Court, Neera Maheshwari, has sought damages from RIL and Hyderabad-based brokerage firm Karvi Consultants at the rate of Rs 500 per day with 18 per cent interest between November 1994 and February 2003 claiming she suffered huge loss due to non-availability of share certificates.
The matter reached the apex court in 2006 after her appeal was dismissed by the National Consumer Dispute Redressal Commission on the grounds that a consumer court did not have power to award compensation for such cases.
A Bench headed by Chief Justice K G Balakrishnan has asked parties to file counter affidavits and posted the matter for hearing in January next year.
Maheshwari`s appeal was dismissed in February 2008 for non-appearance but was restored by the court earlier this year.
However, RIL has submitted that the complaintant held 100 shares in the erstwhile Reliance Polyethylene Ltd (RPL) which was merged with the parent company in 1995.
Consequently, 100 RPL shares were converted into 25 RIL scrips and the certificates were allotted to the complainant in 1995 itself, RIL said.
However, the company said that the amount was not credited and the conversion of shares of the complainant was kept in abeyance due to non-confirmation of Stock Invest Application.
Besides, RIL said that Maheshwari`s grievance had been redressed and claimed that the complaint was devoid of merit and liable to be dismissed with costs.
It stated that Section 10 of the Companies Act prohibited filing of the case against a company in any court other than the court within local jurisdiction of the registered office of the company.
Maheshwari had moved the district forum seeking damages and Rs 30,000 towards cost of litigation from RIL for failing to get share certificates, bonus certificates and dividend within the prescribed period of three months as required under Section 53 of the Companies Act.
While the district forum refused relief to Maheshwari, the state consumer forum penalised RIL by directing it to pay Rs 500 per day for not transferring the shares within the statutory period and held its guilty of deficiency in service.
| NIFTY 
