DCM Shriram demerger: Last day to buy the shares for eligibility

Synopsis

DCM Shriram Industries’ demerger enters its final eligibility phase, with December 23 set as the last day to buy shares under the revised record date of December 26. The stock will trade ex-demerger from December 24, ahead of the Christmas trading holiday, determining shareholder entitlement to the new entities.

DCM Shriram Industries’ demerger sets Tuesday, December 23, as the final day to purchase shares to be eligible, following the revision of the record date to December 26 from the earlier announced December 19.

As a result of the updated timeline and the T+1 settlement cycle, today is the last day to purchase shares and remain eligible for the share allotment in the two newly formed entities under the approved demerger.

Since December 25 is a trading holiday due to Christmas, the stock will begin trading ex-demerger on December 24. Investors purchasing the stock on or after this date will not be entitled to the benefits arising from the corporate restructuring.

The demerger, which has received approval from the Hon’ble National Company Law Tribunal (NCLT), New Delhi Bench, involves the transfer of businesses into two resultant entities — DCM Shriram Fine Chemicals Ltd (DSFCL) and DCM Shriram International Ltd (DSIL), under a composite scheme of arrangement that also includes Lily Commercial Private Ltd and the residual company, DCM Shriram Industries.

As per the terms of the demerger, shareholders holding equity shares of DCM Shriram Industries as on the record date will receive shares in a 1:1:1 ratio. This means for every share held, investors will retain one share in the residual company and receive one fully paid-up equity share of Rs 2 each in DSFCL and one fully paid-up equity share of Rs 2 each in DSIL.

For example, a shareholder with 50 shares in DCM Shriram Industries as on the record date will continue to hold 50 shares in the parent company and will additionally receive 50 shares each in DSFCL and DSIL post demerger. The equity shares of the two demerged entities will be allotted to eligible shareholders upon completion of the necessary procedural formalities.

Investors aiming to benefit from this corporate action must ensure they purchase shares on December 23, as DCM Shriram will trade ex-demerger from December 24.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

...moreless

...moreless