Tips Industries Limited – Ready to RACE ahead!

The principle to be used here is as follows:
Total cost of acquisition before demerger = Total cost of acquisition after demerger

Here is an example:

Pre demerger for Tips Industries 1200 shares bought for a unit prices of Rs 1,450 amounting to Rs 1,740,000 in total acquisition cost. Rs 1,740,000 has to be same before and after demerger.

Therefore, post demerger you should have the following:

1. Tips Music 1200 shares at Rs 580 (580 comes from your dmat account, which you should see against Tips Music), therefore it amount to Rs 695,532 in acquisition cost
2. Delta in acquisition cost left for films = 1,740,000 – 695,532 = Rs 1,044,468
3. Tips Films shares received qty 400
4. Therefore the acquisition cost for Tips Films = Rs 1,044,468 / 400 = Rs 2,611

Hope this helps.