The board of DCM approved the restructuring of its business including demerger of real estate business. DCM share price was locked in 20% upper circuit at Rs 117 on the BSE and also traded on its new 52 weeks high on the NSE and BSE both. The trading volumes on the counter surged five-fold with a combined 915,215 shares changed hands. There were awaiting buy orders for 175,197 shares on the BSE and NSE at 11:21 am.
The board at its meeting held on October 15, 2016, permitted the de-merger of real estate undertaking of DCM and amalgamating it into DCM Realty and Infrastructure. The board also nodded to the merger of TIARA Investment Holdings into Purearth Infrastructure. The merger of Purearth Infrastructure into DCM Realty and Infrastructure will be done after the above-mentioned moves are carried out.
The board also agreed to the demerger of cotton textiles business of DCM to DCM Nouvelle, such that after the demerger shares of DCM Nouvelle will be held by shareholders of DCM in the same proportion as their shareholding in DCM.
At 1:00 PM. DCM share price was trading at 117.50, on its new 52 weeks high, up by 20%.
The shareholders of DCM will receive one equity share of Rs 10 each of the DCM Realty and Infrastructure and DCM Nouvelle for every one of DCM share held by them. DCM Realty and Infrastructure and DCM Nouvelle will soon be listed on the stock exchanges.
DCM said that the management thinks that the essence of the offerings and the risk and return profile of the cotton textile business are different from that of other businesses of DCM, which comprises of the manufacturing and supply of grey iron castings, cylinder heads, cylinder blocks and housing, etc. for automotive markets, real estate development and IT infrastructure services along with related activities.
For the support and resistance levels of DCM, visit DCM share price forecast page of Dynamic Levels website.
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