Oriental Carbon and Chemicals Ltd

How is the demerged valuation being calculated?

As per the “Cost of Acquisition of Shares”, Oriental Carbon is 40.81% and OCCL is 59.19%.

1. Does it mean the company’s assets (book value) is split in the same ratio between the original and the demerged company?
2. If that is the case, is (50% of Duncan + Investments) and (Dharuhera + Mudra plants + office space + other assets – depts) proportionate in same ratio?

The stock split is 1:5. Is it anywhere relevant to the revenue of both businesses? As per the Q1/25 sales results, OCCL’s revenue is more or less 5 times of Oriental Carbon’s revenue. Even the historic figures mentioned in the documents are in similar ratio.

1. Why doesn’t it reflect in the face value? As per the face value it is a 1:1 split (1 x Rs.10 pace valued share: 5 x Rs.2 pace valued share)
2. Before the demerger the OCCL stock was floating around Rs.800 per share. Now Oriental Carbon’s share price is Rs.260. How much the shares of demerged companies will cost when listed?
   2.1. As per face value it should cost Rs.52. In that case whole 6 shares combined will cost significantly less than pre-demerger value.
   2.2. As per revenue, each OCCL share should cost Rs.260. In that case whole 6 shares combined will significantly overvalued.