Companies like Reliance industries are known to bring in merger, demerger, renaming the company, triple option debenture etc. Infact Reliance has come out with repeated IPO under the same name Reliance Petroleum Ltd. And each time it was merged into one company or another. Investors who don't have access to these stock split, bonus, rights information do really get lost. At EASY Investments, we try our level best to clarify on these corporate actions.
Today we stumbled upon a similar case - this time with Pantaloon Retail.
Pantaloon Retail shares were initially listed as Rs.10 Face Value stock. In October 2006, the company announced subdivision of Rs.10 to Rs.2. As a result each shares got split into 5 shares of Rs.2.
On 1st July 2012 Future Retail de-merged its Pantaloons Fashion Format. The de-merger was given effect on 6 April 2013. All the assets and liabilities of Pantaloons Fashion Format have been de-merged and vested with Peter England Fashions and Retail, now known as Pantaloons Fashion & Retail. Accordingly, equity shares of Pantaloons Fashion & Retail were issued to the shareholders of the company in April 2013.
The board approved the share entitlement ratio of one equity share of Rs 2 each of FLFL for every three equity shares of Rs 2 each held in PRIL. So a new share : FLFL got alloted to all share holder free of cost.
Second, the fashion brands business of Future Ventures India will be de-merged and integrated with FLFL from 1 January 2013.
To simplify things, if an investor has bought 50 shares of Pantaloon, he was alloted with 50 shares of FRL.
Subsequently FLFL was alloted in ratio of 1:3 resulting in 16 shares of FLFL. And investor continues to hold 10 shares of PRIL agains initial 50 shares of original allotment.
If and only if the companies have some concern for the investors, such confusions could be avoided in future.
Pantaloon Retail shares were initially listed as Rs.10 Face Value stock. In October 2006, the company announced subdivision of Rs.10 to Rs.2. As a result each shares got split into 5 shares of Rs.2.
On 1st July 2012 Future Retail de-merged its Pantaloons Fashion Format. The de-merger was given effect on 6 April 2013. All the assets and liabilities of Pantaloons Fashion Format have been de-merged and vested with Peter England Fashions and Retail, now known as Pantaloons Fashion & Retail. Accordingly, equity shares of Pantaloons Fashion & Retail were issued to the shareholders of the company in April 2013.
In November 2012, the board of directors of the company had approved a composite scheme of arrangement and amalgamation. As per the scheme, Pantaloon Retail (India) (PRIL)'s de-merged the fashion businesses consisting of Central, Brand Factory, aLL and Planet Sports, which will be integrated into Future Lifestyle Fashions (FLFL) from 1 January 2013.
The board approved the share entitlement ratio of one equity share of Rs 2 each of FLFL for every three equity shares of Rs 2 each held in PRIL. So a new share : FLFL got alloted to all share holder free of cost.
Second, the fashion brands business of Future Ventures India will be de-merged and integrated with FLFL from 1 January 2013.
To simplify things, if an investor has bought 50 shares of Pantaloon, he was alloted with 50 shares of FRL.
Subsequently FLFL was alloted in ratio of 1:3 resulting in 16 shares of FLFL. And investor continues to hold 10 shares of PRIL agains initial 50 shares of original allotment.
If and only if the companies have some concern for the investors, such confusions could be avoided in future.
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