I agree with you. So, once IDFC Ltd goes ex dividend, it will be prudent to buy them back again from the market, my assumption is that the shares will fall by the identical amount of special dividend, i.e. Rs 11.
Based on today’s closing price, IDFC would be ex dividend @ Rs 80.10
Suppose one buys 1000 IDFC @ 80,100 + brokerage
Same money would have fetched 1363 qty of IDFC First at CMP
However, when the reverse merger happens, an IDFC shareholder would get 1650 shares of IDFC First, which is the 20-21% arbitrage one could hope for. Right?
Santanu
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