LTCG Calculation after de-merger of a Cos

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Proloy Samaradivakera (Querist)
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01 June 2025 I bought 1000 shares of ABC Ltd in 2021 on 2 occasions and weighted avg buy rate of the share is Rs 144. In Dec 22 there was a de-merger of ABC Ltd to form a new entity called XYZ Ltd. Shares of the XYZ Ltd was allotted in the ratio of 1:1 – 1000 shares allotted for XYZ Ltd in Dec22. In Feb23 listing of the XYZ happened and market rate of the XYZ Ltd on listing day was Rs 31/ shr and ABC Ltd was Rs 118/ share. What is the calculation now for the adjusted cost price/ buy rate of shares of ABC Ltd and XYZ Ltd for LTCG calculation purpose in case the shares are sold today?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 https://docs.google.com/document/d/1iSILJ5ezyWE4cfTBLdYA3X4wwbQJaXfE1H8IT8SNovg/edit?usp=sharing

Proloy Samaradivakera

Proloy Samaradivakera (Querist)
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13 August 2025 Thank you very much for this detailed explanation. I could understand what you have explained. Should I have further queries I will get back to you.

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