Inefficient Markets or Inefficient Valuation !? ~ Saint-Gobain Sekurit India (SGSI) is to amalgamate into Grindwell Norton (GN)
The Ratio is One Share of GN of Face Value Rs 5(currently quoting @ Rs 259) for every 17 shares of Face Value Rs 10 of SGSI (currently on lower circuit of Rs 2o.25 )
Of course rationally all SGSI Shareholders should exit as the Market Price Gap is @ Rs 100 considering the Amalgamation Ratio ! ~ the Book Values of both listed companies indicated a better ratio of 1:12
Check out the details just posted on SCRIP STANDPOINT Module on my company website
Unfair Amalgamation Ratio of 1:17 ?~ Saint-Gobain Sekurit India into Grindwell Norton ~ 29-Apr-2013
Minority Shareholders of SGSI are just flies being shooed off yet again after a failed delisting attempt by SGSI in June 2012!
SEBI needs to intervene to protect minority shareholders and to confirm which is Inefficient ~ Market or the Valuation !