Up to 450% gain in m-cap! Demerged cos unlock big gains for investors
[hfe_template id='11223']
[ad_1]
Investors betting on companies that have split business as part of restructuring in the past year have struck it rich as unlocking value on account of the demerger has resulted in the market value soaring in several cases. At least 12 domestic companies have demerged their businesses in the last one year, according to an ET study. Of these, the total combined market value of the demerged and parent companies went up by 14% to 450% after the split. At least six companies Edelweiss Financial, Shipping Corp of India, TVS Holdings, NIIT, GHCL and Forbes & Co returned a minimum of 50% after the demerger. Edelweiss Financial Services, which demerged its wealth business into a separate company, Nuvama Wealth Management, was one of the biggest gainers. The market capitalisation of Edelweiss Financial on the adjustment date was Rs 6,281 crore, while the combined market cap of Edelweiss and Nuvama on Monday stood at Rs 34,579 crore, delivering ...