Vedanta Demerger: 5 Companies | Which is performing better? | CA Rachana Ranade | #shorts
Rachana Ranade • 4 days ago
What This Video Is About
The video explains the process of demerger and its effects on shareholders, particularly in relation to the cost of acquisition of shares. It uses the example of Vedanta Limited to illustrate the concept.
Major Ideas Discussed
- Post-demerger, shareholders receive shares of all resulting companies, but the cost of acquisition for these companies is not zero.
- The cost of acquisition is apportioned based on the total cost of acquisition of the original company, as per the notification filed with the exchange.
- The video provides an example of how to calculate the cost of acquisition for resulting companies, using the assumption that the person bought Vedanta Limited at ₹100 and the cost of acquisition post-demerger is ₹52.34 for Vedanta Limited and ₹7.12 for each of the other companies.
- Capital gain is calculated based on the cost of acquisition and the selling price, and the video provides an example of how to calculate capital gain if the person sells Vedanta Power.
- The nature of the capital gain (short-term or long-term) depends on the holding period of the shares, and the video discusses the implications of selling shares within a short period after demerger.
What to Watch Next
Investors should monitor the notification filed with the exchange and understand the apportionment of the cost of acquisition for resulting companies to accurately calculate capital gains and determine the nature of the capital gain.