TCI consecutively hits lower circuit from the day of demerger

Transport Corporation of India (TCI) has been tumbling on bourses from August 26 after a major spin off of the company. The company’s board of directors has already approved demerger of company’s express division, a year ago.

On August 25, the share price of TCI closed at Rs 368.05 with an increment of 0.31 per cent. After spin off of the company’s express division business, the share price of TCI opened at Rs 225 on August 26. After demerger, the stock price of TCI has corrected by 9.73 per cent and is being locked on the lower circuit from consecutive two trading sessions. The company’s share price on Monday closed at Rs 203.1 on an intraday basis.

As per scheme of arrangement, the resulting company will issue and allot to the shareholders of demerged company. For every two equity shares of TCI having face value of Rs 2, investors will get one equity share of TCI Express having face value of Rs 2.

Top bourse BSE has decided to drop TCI from S&P BSE 500 index from August 26, as the logistics firm is demerging its express distribution business into a wholly-owned subsidiary. The company has been replaced by Infibeam Incorporation.