Shares of Saregama India slumped over 4% on Thursday ahead of its results, slated for later today.
What Happened: Shares of the company are down today as it trades ex-date spin-off. The company had announced the demerger of its e-commerce distribution business along with other identified non-core assets in March this year.
The company had announced that for every five shares of Saregama, shareholders will be allotted one share of the new entity. The record date for the demerger was set for July 27.
As per the terms of the agreement, the emerged entity Digidrive Distributors Limited will no longer be a subsidiary of Saregama India Limited. The company’s price band was also revised down from 20% to 10%.
Shares of the demerged entity will be listed on both the NSE and the BSE.
Price Action: Saregama’s share price was down 4.18% to trade at ₹406 in the early hours of trading on Thursday.
Read Next: Saregama Demerger: What It Means For Shareholders?
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.