Binani Metals -Why Face Value Reverse Split to Rs.1000 ??

The recent consolidation ( Reverse split ) by Binani Metals Limited to the unprecedented Rs. 1000 Face Value per share is one of the most interesting and intriguing Indian corporate actions  vis-a-vis small shareholders. No other Listed company in India has a face value of Rs.1000.

Binani Metals Limited ( along with its many amalgamating companies like Metal Distributors Limited ) is more than 70 years old company .So it had many dormant ( dead share holders and Custodian of Enemy Property ) shareholders.

All those share holders holding below 10 or in not multiple of 10 were reduced to holders of fractional shares when Binani Metals Limited  decided to consolidate the face value ( from Rs. 100 to Rs. 1000 ) .These share holders were compulsorily paid pro rata  @ Rs. 450 for Rs. 100 face value " fraction " ( This was a mere fraction of the True Value and the Share was and still is Illiquid . No Trading in the only Regional Exchange  Calcutta Stock Exchange - since 1992 )  .

The interesting topic for further research and study is what became of the dormant and Custodian of Enemy Property share accounts. There shares were compulsorily sold . But what became of such unclaimed  Payment Warrants.

Probably they are still unpaid and that money is  with the Company !!!

http://www.rareindianshares.info/2011/04/morality-corruption-blog-writers.html

http://rareindianshares.blogspot.com/2009/06/binani-metals-limited.html
 http://www.rareindianshares.info/2011/01/custodian-of-enemy-property-pakistan.html
http://www.sify.com/news/Office-of-custodian-of-enemy-property-hotbed-of-corruption-news-National-kkxqahdibhe.html

http://www.sebi.gov.in/dp/binani.pdf

http://commerce.nic.in/epactdet.htm

http://www.rareindianshares.info/2012/09/rate-89-paise-per-share-transfer-of-48.html

http://www.rareindianshares.info/2013/04/nirma-drops-move-to-consolidate-face.html



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http://www.rareindianshares.info/2016/01/binani-cements-massive-debt-banks-sell.html

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Caution :The blog writer has personal / family members' holdings in this company , so please make suitable "provisions " for vested interest .

( PS : All information given in good faith. Please recheck all facts etc. No responsibility with this author / blog. )