Areva T&D tanks 22% on ex-demerger day

Areva T&D India fell 22% on ex-demerger day today. The company demerged its distribution (medium voltage) business operations into a wholly owned subsidiary of Smartgrid Automation Distribution and Switchgear Limited.

Board of Directors of Areva at its meeting held on December 02, 2011 fixed December 15, 2011 as the record date for determining shareholders of the company who would be entitled to receive shares on a proportionate basis.

As per the scheme of demerger, the transferee company (Smartgrid) shall issue and allot to the shareholders of Areva T&D, as on record date, for every one fully paid-up equity share of Rs 2 each held in Areva, one fully paid-up equity shares of Rs 2 each of the company.

Areva T&D touched a 52-week low of Rs 140.90. At 09:19 hrs the share was quoting at Rs 154, down Rs 43.15, or 21.89%.
 
It was trading with volumes of 29,865 shares. In the previous trading session, the share closed up 3.79% or Rs 7.20 at Rs 197.15.

The company's trailing 12-month (TTM) EPS was at Rs 8.87 per share. (Sep, 2011). The stock's price-to-earnings (P/E) ratio was 16.91. The latest book value of the company is Rs 41.90 per share. At current value, the price-to-book value of the company was 3.58. The dividend yield of the company was 1.2%.