Proceeds from sale of Nuvama fractional shares

[catcat]

Anyone who was holding Edelweiss shares as on June 2, 2023 would be entitled to shrares of Nuvama, after the demerger.

The proceeds from the sale of fractional shares were supposed to be given back to the investorors.

Has anyone got the amount for those fractional shares? And if so, when? I am entitiled to around 0.89 fractional shares, and the amount is quite substantial.

PFC did a bonus issue, and I got a very tiny amount for the fractional bonus shares.

 

[Vasuki]

Anyone who was holding Edelweiss shares as on June 2, 2023 would be entitled to shrares of Nuvama, after the demerger.

The proceeds from the sale of fractional shares were supposed to be given back to the investorors.

Has anyone got the amount for those fractional shares? And if so, when? I am entitiled to around 0.89 fractional shares, and the amount is quite substantial.

PFC did a bonus issue, and I got a very tiny amount for the fractional bonus shares.

So 0.89 would be 1 in round off or 0.9 ?

 

[catcat]

So 0.89 would be 1 in round off or 0.9 ?

Nope. Anything less than a whole number is dealt with as follows -
The fractional entitlements get pooled, and are held by a trust. The trust then sells the shares, and then the proceeds are given back in proportion to the fraction held.

Here's the scheme of arrangement, see point 7.6. It does say that the amounts would then be rounded up to the nearest rupee.

Rounding up earlier will lead to all sorts of arbitrages, abuse and distortions.

Nuvama shares are trading at above 4,900. 1 Nuvama share was given for 90 shares of Edelweiss.

Imagine the kind of abuse people could do if rounding up was done - they would buy 45 shares though their own account, and through the accounts of their relatives, and get a 2x profit in 2 days.

 

[Vasuki]

Nope. Anything less than a whole number is dealt with as follows -
The fractional entitlements get pooled, and are held by a trust. The trust then sells the shares, and then the proceeds are given back in proportion to the fraction held.

Here's the scheme of arrangement, see point 7.6. It does say that the amounts would then be rounded up to the nearest rupee.

Rounding up earlier will lead to all sorts of arbitrages, abuse and distortions.

Nuvama shares are trading at above 4,900. 1 Nuvama share was given for 90 shares of Edelweiss.

Imagine the kind of abuse people could do if rounding up was done - they would buy 45 shares though their own account, and through the accounts of their relatives, and get a 2x profit in 2 days.

Ok so your fraction shares will be clubbed then sold.
Then u get back the money in proportion to your fraction.

 

[its_karan]

Anyone who was holding Edelweiss shares as on June 2, 2023 would be entitled to shrares of Nuvama, after the demerger.

The proceeds from the sale of fractional shares were supposed to be given back to the investorors.

Has anyone got the amount for those fractional shares? And if so, when? I am entitiled to around 0.89 fractional shares, and the amount is quite substantial.

PFC did a bonus issue, and I got a very tiny amount for the fractional bonus shares.

Nice

I am waiting for Tata Motors DVR swap

 

[iamdhamo]

Yes I got 0.5 for split/bonus of PFC or rec and the share price for 0.5 was paid to my account