Bajaj Auto Ltd, the country's second-biggest two-wheeler maker, is likely to take a decision on May 17 for carving out the company's auto and financial business into separate entities.
The company today informed the Bombay Stock Exchange its Board of Directors would meet on May 17 to consider a proposal for demerger, besides taking up the audited financial results and dividend for 2006-07.
Bajaj Auto chairman Rahul Bajaj had in the past said the company intended to unlock shareholders value by splitting the manufacturing and financial assets into two separate entities.At present, the company has cash reserves of around Rs 8,000 crore and a market capitalisation of about Rs 25,950 crore. The shares of the company closed at Rs 2,609, up 1.74 per cent on BSE today.
Read more in The Economic Times article.
Showing posts with label de-merger. Show all posts
Showing posts with label de-merger. Show all posts
Thursday, May 10, 2007
Monday, April 9, 2007
Sebi mulls 20% day-one price band for re-listing
Scrips going for initial public offering (IPO) in future may have limited movement on debut day as the Sebi has, as a step towards this goal, has sought to restrict sharp ups and downs in re-listing of scrips on day-one on the exchanges.
The market regulator has invited comments and suggestions on a proposed 20 per cent circuit filter for scrips where trading restarts after de-merger, amalgamation, revocation of suspension among others.
Currently, stock exchanges do not apply price bands or circuit filters on the day of IPO listing, re-commencement of trading in cases of demerger, amalgamation, capital reduction, scheme of arrangement, restructuring as well as in case if the scrip is already listed on some other stock exchange.
In case of IPOs price band or circuit filter on debut day is still at a discussion stage, there is no circuit filter so far on the day a company lists in the exchange for the purpose of price discovery. However, often it has meant sharp price volatility.
Recently, there was significant price rise on the first day of trading in certain securities such as Ahluwalia Contracts, where recommencement in trading saw scrip rise to Rs 611.90 compared with listing price of Rs 101.50 and finally closed on the debut day at Rs 577.80.
Alarmed by the above case Sebi recently deliberated on the matter in the weekly surveillance meetings with stock exchanges and had proposed a price band of 20 per cent to be applied by exchanges for all cases of re-starting of trading other than IPOs.
The market regulator has invited comments and suggestions on a proposed 20 per cent circuit filter for scrips where trading restarts after de-merger, amalgamation, revocation of suspension among others.
Currently, stock exchanges do not apply price bands or circuit filters on the day of IPO listing, re-commencement of trading in cases of demerger, amalgamation, capital reduction, scheme of arrangement, restructuring as well as in case if the scrip is already listed on some other stock exchange.
In case of IPOs price band or circuit filter on debut day is still at a discussion stage, there is no circuit filter so far on the day a company lists in the exchange for the purpose of price discovery. However, often it has meant sharp price volatility.
Recently, there was significant price rise on the first day of trading in certain securities such as Ahluwalia Contracts, where recommencement in trading saw scrip rise to Rs 611.90 compared with listing price of Rs 101.50 and finally closed on the debut day at Rs 577.80.
Alarmed by the above case Sebi recently deliberated on the matter in the weekly surveillance meetings with stock exchanges and had proposed a price band of 20 per cent to be applied by exchanges for all cases of re-starting of trading other than IPOs.
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