@smallville wrote:@cse.alpha wrote:@slstock wrote:
Regarding Nav after Bonus share issue:
Present Share holder funds : 1,023,698,595
Capitalization of reserves : rs 8,100,000
After Bonus num of shares : 162000+810000= 2430000
Can you check whether the new NAV is Rs 424. 68 or rs 431 as per you calculations already?
I don’t think the capitalization of reserves will affect the shareholder funds – it is just a book entry.
So using 30th June 2011 shareholder funds of Rs1,024 mn, the post capitalization book value per share of ALLI should be Rs 421.27.
But the highlight of the ALLI results has to be the very strong operating performance of the leasing business. This should hopefully compensate for any weakness in stock market investment returns this year.
With the capitalisation, shares get increased by another 810000 @ Rs. 10/- so it brings the new capital value amounting to Rs. 24300000/- of the company.
When I checked the financial reports, shareholders' funds consists of following;
- Stated Capital
- Statutory Reserve Fund
- Capital Reserves
- General Reserves
Therefore, I've added the new stated capital to the shareholder's fund and that's why the NAV is at 431.28.
So isn't any increase in no of shares @10/- due to release of new shares (capitalization) not gonna make the stated capital increased?
Sorry, I'm a bit confused on that. Pls enlighten..
Small , I think in a capitalization of reserves , they capitalize funds from some reserve. So in this case it would be their Capital Reserve. Yes the Stated Capital should go up ( Rs 8100000) but the funds will come from Capital reserve from my understanding. So all in all the share holder fund will remain put. Anyway this is what I understood.