DEMERGER OF A LISTED COMPANY

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Kavitha (Querist)
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19 June 2010 I have a query regarding Demerger of a Company Listed with BSE. Hope you will be able to provide me with inputs. My query is;

1.What should be the minimum paid up capital for listing of the resultant Company with BSE again?
2.Is it a Mandatory requirement to engage a Merchant Banker in this process?

Can you also provide me a list of pre-demerger requirements of a Listed Company. Awaiting your reply.

Rasesh

Rasesh (Expert)
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21 June 2010 BSE and NSE both have different criteria and are available on their websites.

BSE: Net worth Rs. 10 Cr. and Capital Rs. 3 Crores
NSE: Net worth Rs. 25 Cr

Merchant Bankers fiarness opinion is mandatory requirement

The checklist for Clause 24(f) is available on the website.

Link:
https://www.bseindia.com/downloads/Amalgamation-%20Demerger%20Schemes-%20Clause%2024(f).zip

In case any further details are required, do let me know.

Message likes : 1 times

Kavitha

Kavitha (Querist)
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03 July 2010 If opinion of Merchant Banker is mandatory then why does the clause say - if applicable "Copy of the fairness opinion on the valuation obtained from independent merchant banker, if applicable."

Rasesh

Rasesh (Expert)
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03 July 2010 If you have gone through the annexures to be submitted, you will observe that the fairness opinion is like a mandatory requirement. In my view, the stock exchanges will not give its permission under clause 24(f) unless the fairness opinion by Merchant Banker is submitted.

Kavitha

Kavitha (Querist)
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03 July 2010 Thanks Mr.Rajesh

Rasesh

Rasesh (Expert)
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03 July 2010 Always welcome Madam.

It's Rasesh not Rajesh

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