In April 2006, Nahar Exports Ltds informed the BSE in an announcement that for every 100 shares a shareholder holds in Nahar Export (at a FV of Rs. 10) - he will receive :
1. 70 shares of NEL (at FV = Rs 5) and,
2. 55 shares of NSML (at FV = Rs 5) (Nahar Spinning Mills Limited)
This was discussed in my post on 26th April, 2006 (here)
The demerger came into effect today. The mechanics of the deal are enclosed :
OUT : 100 NEL shares @ Rs. 101 = Rs. 10,100
IN : (70 NEL shares @ Rs. 60.75) + (55 NSML shares @ Rs. 149.05)
= Rs. 4252.50 + Rs. 8197.75
= Rs. 12,450.25
Value unlocked = +23%
Interestingly, the buy recommendation was made when the price of NEL was Rs. 80 per share. The annualised return thus comes to 61% plus, dividend income.
At current levels of Rs. 60 per share, NEL is fairly valued and not a buy scrip.
Friday, March 23, 2007
Nahar Export de-merger
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2 comments:
nahar is going down as anything......
what do u say is it a hold accumulate or sell and move out.....
It made money only on the first day. Net into loss.
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