AB Nuvo - Grasim Merger, ABFSL Demerger

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Farhan Ghumra, Jun 30, 2017.

  1. Farhan Ghumra

    Farhan Ghumra Active Member

    Joined:
    Nov 11, 2015
    Messages:
    223
    Likes Received:
    105
    Soon, AB Nuvo will be merged in Grasim and Aditya Birla Finance Service Ltd. will be demrged from the combined entity. The share swap ratio is like this. For each 10 shares of AB Nuvo, share holder will get 15 Grasim shares and 21 ABFSL shares.

    To get the short term benefit of this corporate restructuring, what should be the strategy? Should one buy Grasim or AB Nuvo? How much the minimum quantity?

    @RAMA MURTHY SASTRY CHALLA @Srouta Mukherjee @w4wealth @kharb @BombayBoy @Guru Vachaal @Arvind2k
     
  2. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

    Joined:
    Sep 8, 2015
    Messages:
    3,688
    Likes Received:
    2,011
    I am waiting for Aditya birla financial listing ....
    remaining Aditya Birla group companies i am not interested
     
  3. Gautam

    Gautam Member

    Joined:
    Apr 11, 2015
    Messages:
    34
    Likes Received:
    13
    I dont have views for the short term but for long term , its very good value unlocking for the shareholders. I'm holding AB Nuvo, will add more of AB Capital once its de-merged from Grasim.
     
    Srouta Mukherjee likes this.
  4. Farhan Ghumra

    Farhan Ghumra Active Member

    Joined:
    Nov 11, 2015
    Messages:
    223
    Likes Received:
    105
    My core question is which one to buy to get more value unlocking benefits.

    Grasim or ab nuvo?
     
  5. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

    Joined:
    Sep 8, 2015
    Messages:
    3,688
    Likes Received:
    2,011
    i my view direct Aditya Birla financial stock buying is better
     
  6. starry_eyes

    starry_eyes Member

    Joined:
    Apr 13, 2017
    Messages:
    83
    Likes Received:
    9
    @RAMA MURTHY SASTRY CHALLA sir, can you share your thought process behind your advice that it's better to directly buy the AB financial stock.
     
  7. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

    Joined:
    Sep 8, 2015
    Messages:
    3,688
    Likes Received:
    2,011
    yes , i am not interested to buy Grasim or AB Nuvo , now i am waiting for AB Financial listing ....
    i want to invest in AB Financial only in A Birla Group
     
  8. starry_eyes

    starry_eyes Member

    Joined:
    Apr 13, 2017
    Messages:
    83
    Likes Received:
    9
    Sir, I fully understand that you are not interested in buying Grasim or AB Nuvo and your only interest is the financial arm. What I want to know is why is this the case? Why does buying AB Novu and thus eventually acquiring shares in the Financial Arm not make sense or is not better than buying the Financial Arm share directly
     
  9. Gautam

    Gautam Member

    Joined:
    Apr 11, 2015
    Messages:
    34
    Likes Received:
    13
    AB Nuvo
     
    Farhan Ghumra likes this.
  10. shakti khanduri

    shakti khanduri Active Member

    Joined:
    Jul 24, 2015
    Messages:
    521
    Likes Received:
    210
    Answer to this query will make us understand nuances of value unlocking strategy as followed master investors like Sastry ji,Mr kharb,Mr starry eyes et al
     
  11. BombayBoy

    BombayBoy Well-Known Member

    Joined:
    Oct 25, 2015
    Messages:
    458
    Likes Received:
    328
    it's pretty late now but here's my 2 cents

    Grasim and AB Nuvo traded exactly as per the merger ratio, 1.5 Grasim for 1 AB Nuvo share held. The last traded price for AB Nuvo was 1887/88 on July 4, 2017. And it doesn't look like there was any opportunity if you look at the price movement of both, Grasim & AB Nuvo for the YTD period.

    [​IMG]

    I've bought Grasim and intend to hold it even after the record date.
     
  12. Farhan Ghumra

    Farhan Ghumra Active Member

    Joined:
    Nov 11, 2015
    Messages:
    223
    Likes Received:
    105
    Thanks fellow members for your response. I bought 10 shares of ab nuvo. I will get abcl shares after demerger. The discovery price of abcl will be crucial to see.
     
  13. shakti khanduri

    shakti khanduri Active Member

    Joined:
    Jul 24, 2015
    Messages:
    521
    Likes Received:
    210
    I expect probablity of better value unlocking in A B Finance.Let us see at what price one can buy it.
     
    Last edited: Jul 10, 2017
  14. wild_hipman

    wild_hipman Active Member

    Joined:
    Jul 10, 2017
    Messages:
    198
    Likes Received:
    66
    Most of the value may not be available via secondary market purchases. I have gone down the Grasim route post reading this thread.
     
  15. nayantravels

    nayantravels Member

    Joined:
    Oct 31, 2015
    Messages:
    55
    Likes Received:
    3
    Does it will benefit Aditya Birla money as it is going through lower circuits daily as it is part of Aditya Birla capital regards an thanks
     
Loading...