Shares of IVRCL jumped nearly 6% to hit the weekly high of Rs44.25, on the buzz that the Andhra Pradesh High Court is likely to approve the merger of IVRCL with IVRCL Assets & Holdings.
Investors will get five shares of IVRCL for six shares of IVRCL Assets & Holdings, once the merger is cleared. Analysts said a price arbitrage existed between the two stocks if the merger is approved.
In January, IVRCL had secured the approval from the Competition Commission of India for the proposed restructuring of business operations, paving way for amalgamation of IVRCL Assets & Holdings Ltd, with IVRCL Ltd., and the de merger of real estate business into a new company. The merger decision was announced last year.
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Investors will get five shares of IVRCL for six shares of IVRCL Assets & Holdings, once the merger is cleared. Analysts said a price arbitrage existed between the two stocks if the merger is approved.
In January, IVRCL had secured the approval from the Competition Commission of India for the proposed restructuring of business operations, paving way for amalgamation of IVRCL Assets & Holdings Ltd, with IVRCL Ltd., and the de merger of real estate business into a new company. The merger decision was announced last year.
....more info