ABB India shares dipped 4 per cent to Rs 1,280 on the BSE on Friday after the stock turned ex-date for spin off today.
The board of directors of ABB India has fixed “December 23, 2019” as the record date for determining the names of the equity shareholders of the Company to whom equity shares of ABB Power Products and Systems India Limited (“APPSlL”), would be issued and allotted.
As per the sanctioned scheme of arrangement between the Company and APPSIL, shareholders of the company who are holding equity shares as on the record date are entitled for one equity of APPSIL for every five equity shares held in the Company.
In March, ABB India said, in a regulatory filing, that “the proposed demerger is expected to assist the current power grids division to independently pursue the business excellence built over a long period in the power infrastructure with its robust and time tested business model.”The simplification of the Company’s business model and structure with the implementation of this new organization is expected to provide each business with full operational ownership of products, functions, R&D and territories, the company said
“These actions are likely to position the Company with a leadership role in digital solutions, and evolving technologies such as artificial intelligence in India, while allowing APPSIL to independently focus on a likely leadership position in the PG Business with its unique and established market dynamics,” it said.
At 11:44 am, ABB India was trading 3 per cent lower at Rs 1,285 on the BSE, as compared to 0.17 per cent rise in the S&P BSE Sensex. A combined 26,290 equity shares have changed hands on the counter on the NSE and BSE so far.