India Cements will give shares of Chennai Super Kings Ltd. (The company that owns the IPL team) to all its shareholders, for free. The record date is October 9, 2015. So you get a chance to own the Chennai Super Kings if you buy India Cement Shares now or before October 7, and hold them through the record date . You get one share of the Chennai Super Kings owning company if you own a share of India Cement. Apparently, there is no major value being ascribed to India Cements: Stock Price: Rs. 76.9 Futures Contract Price (October): Rs. 77.0 Typically, in such arrangements people would believe that the stock price of India Cements will fall (to account for the value in the CSK team) on the record date. The October Futures contract, which expires 29 Oct (much after the record date) should be trading at a lower price to reflect this fall.… (Read On…)
[via Capital Mind » Capital Mind]
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