Arvind Fashions falls 0.62% to close at Rs 1,040

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Published: April 2, 2019 8:38:07 AM

In response, the company mentioned about the miscalculation of the base price at `311 on March 8, 2019 , when AFL was listed on the bourses.

As per the swap ratio of 1:5, shareholders of AFL would receive one fully paid up equity share of `4 each for every 5 shares held in Arvind Limited.

The stock of Arvind Fashions (AFL) fell by 0.62% on Monday to close at `1,040.15 on the BSE. The total traded quantity was 0.11 lakh shares against the two-week average of 1.05 lakh shares.

AFL’s scrip was put under additional surveillance measures on March 26, 2019, by the exchanges to monitor the price movement.

In response, the company mentioned about the miscalculation of the base price at `311 on March 8, 2019 , when AFL was listed on the bourses.

Market participants had estimated the base price to be between `1,200 and `1,500. They claimed that the base price of `311 was wrong after observing the last traded price of the parent firm, Arvind Limited, before the demerger on November 27, 2018, to be the same.

As per the swap ratio of 1:5, shareholders of AFL would receive one fully paid up equity share of `4 each for every 5 shares held in Arvind Limited. Thus, the market experts estimated the price to be discovered around `1,500 (`311 per share multiplied by 5 shares of Arvind limited that had to be allotted to shareholders of AFL).

The shares have gained `418.85 or 67.42% since the day it was listed.

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