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Ranbaxy Laboratories
Tax Implications of Ranbaxy Open Offer
Posted by :
GuestTracked by: 0 Boarder
Hi Boarders,
I would be glad if you could throw some light on tax implications of Ranbaxy Open offer. Here is the situation -
My father holds 400 shares of Ranbaxy which he has accumulated over last 15 years. He originally purchased few shares which after splits and bonuses through the years have grown to 400 in number. He has not purchased any ranbaxy share in last one year. Now if he tenders all of these shares in the open offer, what would be the tax liability? I guess that since these would be taken as long term, the tax rate woule be 10%. But how would the capital gain be calculated? I mean what would be taken as the acquisition price of shares?
Thanks in advance!...
RANBAXY OPEN OFFER GO FOR IT !
Posted by :
vtycoonTracked by: 0 Boarder
excellent research work ..cheeerss :D
very knowledgeable...
In reply to:
RANBAXY OPEN OFFER GO FOR IT !
Posted by : vtycoon
BY VTYCOON
Ranbaxy Laboratories (RLL) open offer by Daiichi Sankyo to acquire 9,25,19,126 fully paid up equity shares of Rs.5 each at Rs.737 per share has opened on 16th August 08 and would remain open till 4th September 08. However, majority of the shareholders of RLL, eligible to participate in the offer have not received Letter of Offer, together with the Form of Acceptance cum Acknowledgement and hence are quite anxious to know the procedure to participate in this offer.
We wish to state that there is no need to get anxious and impulsive as Letter of Offer would be received by all the holders by 22nd August 08. Even if they don’t receive it, the same can be downloaded from SEBI’s website (http://www.sebi.gov.in) or it can be procured from the Registrar to the Offer - Karvy Computershare Pvt. Ltd. from its offices at various places which are given hereunder with its telephone numbers –
Ahmedabad – (079) 24620422/26400528
Bangalore – (080) 26621192
Chennai – (044) 28151793
Hyderabad (040) 23420818
Kolkata – (033) 24644891
Mumbai, Andheri – (022) 26730799/0843
Mumbai, Fort – (022) 66382666
New Delhi – (011) 43181700
Shareholders of RLL whose names appear as beneficiaries on the records of the respective depositories as well as on the Register of Member at the close of business hours on 27th June 08, being the specified date, would receive this Letter of Offer. But, even persons who have acquired shares of RLL after this specified date, are also eligible to participate in this offer. Refer para 11.7 on page 102 of the Letter of Offer.
Beneficial owners (holders of shares in dematerialised form) who wish to tender their shares will be required to send their Form of Acceptance-cum-Acknowledgement along with a photocopy of the delivery instructions in ‘off-market’ mode or counterfoil of the delivery instructions in ‘off-market’ mode, duly acknowledged by the DP, in favour of the above mentioned special depository account, to the Registrar to the Offer –Karvy Computershare Private Limited, either by hand delivery on weekdays during business hours (Mondays to Saturdays between 10.00 a.m. to 5.00 p.m.) or by registered post so as to reach on or before the close of the Offer, i.e. by September 04, 2008, in accordance with the instructions specified in the Letter of Offer and in the Form of Acceptance-cum-Acknowledgement. The application should state the name, address, number of shares held, number of shares offered, Depository Participant (‘DP’) name, DP ID number, beneficiary account number alongwith a photocopy of the delivery instruction in ‘off-market’ mode, duly acknowledged by the DP in favour of Karvy RLL - Escrow Demat Account, filled in as per the following instructions:
Depository Name
NSDL
DP Name
HSBC Limited
DP ID Number
IN 300142
Beneficiary Account Number
1064 2118
Beneficial owners should ensure that they credit their shares in favour of the aforementioned special depository account on or before the close of the Offer i.e. by September 04, 2008. Shareholders holding their beneficiary account in CDSL will have to use an inter-depository delivery instruction slip for the purpose of crediting their shares in favour of the special depository account with NSDL. RLL’s shares are in the compulsory demat segment
Refer Para 11.6 of the Letter of Offer.
In case of non-receipt of the Letter of Offer, the eligible persons may (i) download the same from the SEBI website (www.sebi.gov.in), (ii) obtain a copy of the same by writing to the Registrar to the Offer, or (iii) make an application to the Registrar to the Offer, on a plain paper stating the name, address, number of shares held, number of shares offered, along with the documents as mentioned above, so as to reach the Registrar to the Offer on or before the close of the Offer, i.e. by September 04, 2008 or in the case of beneficial owners, they may send the application in writing to the Registrar to the Offer, on a plain paper stating the name, address, number of Shares held, number of Shares offered, DP name, DP ID, beneficiary account number and a photocopy of the delivery instruction in ‘off- market’ mode or counterfoil of the delivery instruction in the ‘off-market’ mode, duly acknowledged by the DP, in favour of the aforesaid special depository account, so as to reach the Registrar to the Offer, on or before the close of the Offer, i.e. by September 04, 2008.
Refer Para 11.11 of the Letter of Offer.
Hence, it is very easy and simple to tender your shares under open offer and there is no need to panic, as still there is ample time of about 15 days left.
The present outstanding shares of RLL are 37,32,37,870 shares while open offer is for 9,25,19,126 shares, which implies offer for 24.79% of present equity. Though the mandatory open offer is for 20% equity of RLL, which is calculated after including outstanding ESOP of 83,88,353 shares, preferential allotment to Daiichi of 4,62,58,063 shares and 3,47,11,343 shares underlying possible conversion of zero coupon foreign currency convertible bonds.
Of the present equity of 37.32 crore shares, Daiichi is acquiring 12.99 crore shares, from promoters of RLL, being 34.81% of the present equity. This means, 9.25 crores shares would get acquired out of remaining 24.33 crore shares, which would result in an acceptance ratio of 38%. As some of the shareholders may not be able to participate in the offer, the acceptance ratio for all practical purposes can estimated to be 40%.
Share is now ruling at Rs.500. If somebody buys 100 shares today, it would cost him Rs.50,000. If 40 shares are expected to get accepted at Rs.737, it would realize Rs.29,480, leaving residual cost of 60 shares at Rs.20,520 or Rs.342 per share.
If we add tax on estimated gain of Rs.9,480 (Rs.237 x 40 shares) at Rs.2,800, the residual cost of 60 shares would be at Rs.390 per share. Share of RLL, post open offer, is likely to rule at around Rs.360 per share. For September F&O, the share is ruling at Rs.362 per share.
So under the given circumstances, there does not exist any arbitrage play and hence it is not advised to buy from the secondary market now at Rs.500 per share and participate in open offer.
If you have expectations of share price going up beyond Rs.360, post open offer, it is advised to buy it in Future segment.
With all these developments, existing shareholders of RLL need not get panic and you have sufficient time to act. Only if you have your Demat account with CDSL, make sure to obtain Inter-Depository Delivery Instruction Slip from your DP.
Also it is advised to exercise open offer opportunity.
open offer
Posted by : rpgargaTracked by: 0 Boarder
Most unlikely. If it was so, people will transfer shares to other family members who have d mat accounts. rpgarga...
In reply to:
open offer
Posted by :
sck
Is it true that those holding less than 50 shares -all the shares will be acceptd in open offer as per sebi small investor guidenc?
CAPITAL GAINS & THE OPEN OFFER
Posted by : ANIL MICTracked by: 1 Boarder
I WOULD LIKE TO KNOW WHETHER THE RANBAXY OPEN OFFER WOULD BE A STT PAID TRANSACTION. RATHER THE PRICE DIFFERTIAL GAIN FOR A LONG TERM INVESTOR LIKE ME IS TAXABLE OR NOT....
Tracked by: 0 Boarder
Is it true that those holding less than 50 shares -all the shares will be acceptd in open offer as per sebi small investor guidenc?...
RANBAXY OPEN OFFER GO FOR IT !
Posted by : vtycoonTracked by: 0 Boarder
BY VTYCOON
Ranbaxy Laboratories (RLL) open offer by Daiichi Sankyo to acquire 9,25,19,126 fully paid up equity shares of Rs.5 each at Rs.737 per share has opened on 16th August 08 and would remain open till 4th September 08. However, majority of the shareholders of RLL, eligible to participate in the offer have not received Letter of Offer, together with the Form of Acceptance cum Acknowledgement and hence are quite anxious to know the procedure to participate in this offer.
We wish to state that there is no need to get anxious and impulsive as Letter of Offer would be received by all the holders by 22nd August 08. Even if they don’t receive it, the same can be downloaded from SEBI’s website (http://www.sebi.gov.in) or it can be procured from the Registrar to the Offer - Karvy Computershare Pvt. Ltd. from its offices at various places which are given hereunder with its telephone numbers –
Ahmedabad – (079) 24620422/26400528
Bangalore – (080) 26621192
Chennai – (044) 28151793
Hyderabad (040) 23420818
Kolkata – (033) 24644891
Mumbai, Andheri – (022) 26730799/0843
Mumbai, Fort – (022) 66382666
New Delhi – (011) 43181700
Shareholders of RLL whose names appear as beneficiaries on the records of the respective depositories as well as on the Register of Member at the close of business hours on 27th June 08, being the specified date, would receive this Letter of Offer. But, even persons who have acquired shares of RLL after this specified date, are also eligible to participate in this offer. Refer para 11.7 on page 102 of the Letter of Offer.
Beneficial owners (holders of shares in dematerialised form) who wish to tender their shares will be required to send their Form of Acceptance-cum-Acknowledgement along with a photocopy of the delivery instructions in ‘off-market’ mode or counterfoil of the delivery instructions in ‘off-market’ mode, duly acknowledged by the DP, in favour of the above mentioned special depository account, to the Registrar to the Offer –Karvy Computershare Private Limited, either by hand delivery on weekdays during business hours (Mondays to Saturdays between 10.00 a.m. to 5.00 p.m.) or by registered post so as to reach on or before the close of the Offer, i.e. by September 04, 2008, in accordance with the instructions specified in the Letter of Offer and in the Form of Acceptance-cum-Acknowledgement. The application should state the name, address, number of shares held, number of shares offered, Depository Participant (‘DP’) name, DP ID number, beneficiary account number alongwith a photocopy of the delivery instruction in ‘off-market’ mode, duly acknowledged by the DP in favour of Karvy RLL - Escrow Demat Account, filled in as per the following instructions:
Depository Name
NSDL
DP Name
HSBC Limited
DP ID Number
IN 300142
Beneficiary Account Number
1064 2118
Beneficial owners should ensure that they credit their shares in favour of the aforementioned special depository account on or before the close of the Offer i.e. by September 04, 2008. Shareholders holding their beneficiary account in CDSL will have to use an inter-depository delivery instruction slip for the purpose of crediting their shares in favour of the special depository account with NSDL. RLL’s shares are in the compulsory demat segment
Refer Para 11.6 of the Letter of Offer.
In case of non-receipt of the Letter of Offer, the eligible persons may (i) download the same from the SEBI website (www.sebi.gov.in), (ii) obtain a copy of the same by writing to the Registrar to the Offer, or (iii) make an application to the Registrar to the Offer, on a plain paper stating the name, address, number of shares held, number of shares offered, along with the documents as mentioned above, so as to reach the Registrar to the Offer on or before the close of the Offer, i.e. by September 04, 2008 or in the case of beneficial owners, they may send the application in writing to the Registrar to the Offer, on a plain paper stating the name, address, number of Shares held, number of Shares offered, DP name, DP ID, beneficiary account number and a photocopy of the delivery instruction in ‘off- market’ mode or counterfoil of the delivery instruction in the ‘off-market’ mode, duly acknowledged by the DP, in favour of the aforesaid special depository account, so as to reach the Registrar to the Offer, on or before the close of the Offer, i.e. by September 04, 2008.
Refer Para 11.11 of the Letter of Offer.
Hence, it is very easy and simple to tender your shares under open offer and there is no need to panic, as still there is ample time of about 15 days left.
The present outstanding shares of RLL are 37,32,37,870 shares while open offer is for 9,25,19,126 shares, which implies offer for 24.79% of present equity. Though the mandatory open offer is for 20% equity of RLL, which is calculated after including outstanding ESOP of 83,88,353 shares, preferential allotment to Daiichi of 4,62,58,063 shares and 3,47,11,343 shares underlying possible conversion of zero coupon foreign currency convertible bonds.
Of the present equity of 37.32 crore shares, Daiichi is acquiring 12.99 crore shares, from promoters of RLL, being 34.81% of the present equity. This means, 9.25 crores shares would get acquired out of remaining 24.33 crore shares, which would result in an acceptance ratio of 38%. As some of the shareholders may not be able to participate in the offer, the acceptance ratio for all practical purposes can estimated to be 40%.
Share is now ruling at Rs.500. If somebody buys 100 shares today, it would cost him Rs.50,000. If 40 shares are expected to get accepted at Rs.737, it would realize Rs.29,480, leaving residual cost of 60 shares at Rs.20,520 or Rs.342 per share.
If we add tax on estimated gain of Rs.9,480 (Rs.237 x 40 shares) at Rs.2,800, the residual cost of 60 shares would be at Rs.390 per share. Share of RLL, post open offer, is likely to rule at around Rs.360 per share. For September F&O, the share is ruling at Rs.362 per share.
So under the given circumstances, there does not exist any arbitrage play and hence it is not advised to buy from the secondary market now at Rs.500 per share and participate in open offer.
If you have expectations of share price going up beyond Rs.360, post open offer, it is advised to buy it in Future segment.
With all these developments, existing shareholders of RLL need not get panic and you have sufficient time to act. Only if you have your Demat account with CDSL, make sure to obtain Inter-Depository Delivery Instruction Slip from your DP.
Also it is advised to exercise open offer opportunity.
...
Ranbaxy manufacturing substandard drugs
Posted by : GuestTracked by: 0 Boarder
Tuesday, August 19, 2008
Substandard manufacturing investigated: Ranbaxy under the microscope
Indian manufacturer Ranbaxy is in the news yet again. And, in a trend that seems not too surprising, it’s in the news for all the wrong reasons. Currently, Ranbaxy is under contract with the American Government to provide antiretroviral drugs (for HIV/AIDS) at a lower cost. However, these very drugs are now under the microscope, with investigations last month instituted to examine whether the same are substandard, impotent or unstable. ProPublica (an independent, non-profit newsroom that hopes to bring to light stories of public interest through investigative journalism) has unearthed a U.S. investigation into whether Indian giant Ranbaxy has violated standards set by the Food and Drug Administration (FDA) in its manufacturing process and by concealing the same, engaged in a \\\\...
Good returns
Posted by : sripalsTracked by: 0 Boarder
Current price : 505
Target price : 737
ROI : ~45% within few days.
Happy investment.
If you don't get the offer letter go and downlaod it from
sebi.gov . in/takeover/ranbaxylof.pdf...
Ranbaxy open offer
Posted by : NPTracked by: 4 Boarders
the form is also available at ranbaxy website - ranbaxy . com in the investor relations section...
In reply to:
Ranbaxy open offer
Posted by : sripals
Here is the link to open offer document available in the sebi site
http: //w w w .sebi.gov. in/takeover/ranbaxylof.pdf
Ranbaxy open offer
Posted by : shishiTracked by: 4 Boarders
Is is possible to excercise the option of accepting the open offer ONLINE? ...
In reply to:
Ranbaxy open offer
Posted by : imti_lak
In case of non-receipt of the Letter of Offer, the eligible persons may (i) download the same
from the SEBI website (sebi.gov site), (ii) obtain a copy of the same by writing to the
Registrar to the Offer, or (iii) make an application to the Registrar to the Offer, on a plain
paper stating the name, address, number of shares held, number of shares offered, along
with the documents as mentioned above, so as to reach the Registrar to the Offer on or
before the close of the Offer, i.e. by September 04, 2008 or in the case of beneficial owners,
they may send the application in writing to the Registrar to the Offer, on a plain paper stating
the name, address, number of Shares held, number of Shares offered, DP name, DP ID,
beneficiary account number and a photocopy of the delivery instruction in ‘off- market’ mode
or counterfoil of the delivery instruction in the ‘off-market’ mode, duly acknowledged by the
DP, in favour of the aforesaid special depository account, so as to reach the Registrar to the
Offer, on or before the close of the Offer, i.e. by September 04, 2008.
Ranbaxy open offer
Posted by :
adaljaarunTracked by: 4 Boarders
please contact icici direct people or karvy people who can guide you properly....
In reply to:
Ranbaxy open offer
Posted by : shareabrar
I am an NRE and have a ICICI Direct trading account. I have 500 shares of Ranbaxy and want to sell it through the open offer. can anyone guide me through the process. Note that till now I have not received any letter for the same from Ranbaxy
Ranbaxy open offer
Posted by : adaljaarunTracked by: 4 Boarders
no advice for you as you are very matured investor....
In reply to:
Ranbaxy open offer
Posted by : Guest
Hi Aarun,
Do you know if this form is available anywhere online in pdf format? what\\`s the procedure after getting the form?
Regards,
Sunil.
Tracked by: 0 Boarder
yes, Ranbaxy is not likely to fall drastically and hene it can go up and give you an opportunity to cover your position. But do not forget to cover your position if rate is attractive rather than keeping position open to risk....
In reply to:
buy
Posted by : newbie_0904
I have sold Sept 380 put at 50. I think I did it right.
buy
Posted by : newbie_0904Tracked by: 0 Boarder
I have sold Sept 380 put at 50. I think I did it right....
In reply to:
buy
Posted by : marketbear
Traders should buy ranbaxy in the range of 480-490 for short term target of atleast 540 level over couple of weeks
Tracked by: 0 Boarder
Traders should buy ranbaxy in the range of 480-490 for short term target of atleast 540 level over couple of weeks...
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