InvestorQ : I bought suven life shares at the price range of Rs.272. Now it is trading at Rs.20. Came to know that it was due to demerge. I want to know when will shares allotted to demat account. thank you.
SELVAKUMAR made post

I bought suven life shares at the price range of Rs.272. Now it is trading at Rs.20. Came to know that it was due to demerge. I want to know when will shares allotted to demat account. thank you.

Answer
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Anu Biswas answered.
8 months ago


This is part of the scheme of demerger of the CRAMS business of Suven into a separate company and its listing. Here is what you need to know about it.

· The share price of Suven Life Sciences fell 90% on January 21 as the stock traded ex-demerger of its CRAMs business.

· The record date to receive the shares of the CRAMS business is 22 Jan so you should have either got the shares in your demat or it must be coming soon. It is yet to be listed and traded on the stock exchanges.

· You will recollect that the NCLT Hyderabad passed order in early January sanctioning the Composite Scheme of Arrangement amongst Suven Life Sciences (SLSL) and Suven Pharmaceuticals and their respective shareholders and creditors.

· Earlier this year, Suven Life had acquired all shares of Suven Pharmaceuticals (SPL), which is the CRAMS business. The contract research and manufacturing services (CRAMS) business, including respective assets and liabilities, were transferred to Suven Pharmaceuticals by way of demerger.

· As consideration, Suven Pharma will issue one fully paid up equity share of Rs.1 each for every one fully paid up equity share of Rs.1 held by shareholders of Suven Life.

· Thus the overall deal is expected to be neutral for the shareholders.