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Corporate News | BSE to discuss shares consolidation

Corporate News | BSE to discuss shares consolidation
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First Published: Wed, May 18 2011. 12 19 AM IST
Updated: Wed, May 18 2011. 12 19 AM IST
Mumbai: The board of Asia’s oldest bourse, Bombay Stock Exchange (BSE) which meets on Wednesday would discuss a proposal to consolidate the shares of the exchange, in preparation for a bid to list its shares, a person with knowledge of the matter said. Currently, BSE shares have a face value of Re 1, which would become Rs 2, after the consolidation as the number of shares get halved.
Although, this would not have any impact on the financials of the company, the move would pave the way for the company to get listed on the bourses. As Securities and Exchanges Board of India regulations do not allow a company with face value below Rs 10 to issue shares below an issue price of Rs 500, this move would allow the exchange to issue shares at a price close to its current valuations, when it gets listed. The share price of BSE is estimated to be around Rs 250 now.
The move by BSE is an indication that the Jalan committee’s recomendation that exchanges should not be listed is unlikely to be accepted.
Pramit Bhattacharya
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Ruia Group acquires French co
Kolkata: Within days of concluding agreements to acquire two foreign firms, the Kolkata-based Ruia group on Tuesday said it is to take control of another auto component company, this time in France. The Ruia group, which in India controls tyremakers Dunlop India Ltd and Falcon Tyres Ltd, is to acquire Sealynx Automotive SAS under an order of the commercial court of Nanterre, France.
The firm manufactures rubber sealing systems for carmakers such as Renault and Peugeot-Citroen. It has plants in France, Romania, Tunisia and Morocco, and in 2010 registered a revenue of €68 million. “Since the economic meltdown of 2008 Sealynx Automotive was suffering from financial uncertainties,” the Ruia Group said in a statement. It did not disclose how much it is to pay for this acquisition.
Manish Basu
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First Published: Wed, May 18 2011. 12 19 AM IST