Scheme of arrangement

#1
Hi,

Should price adjustment be done in scheme of arrangement as it is done in case of bonus/split/rights issue?

To give an example, below is the case of "Zee Entertainment"

Scrip Code : 505537 Company: ZEE ENTER

Corporate Actions

Purpose Ex-date Book Closure/Record Date
Scheme of Arrangement 18/12/2006 BC 24/12/2006-28/12/2006

And the price history is....

Date Open High Low Close Volume
14 December 2006 339.95 357.85 334.00 353.30 2061840
15 December 2006 358.90 359.00 335.00 341.00 4832640
18 December 2006 249.00 297.80 249.00 272.20 3447841
19 December 2006 273.00 278.80 265.00 272.95 1428623

There is steep fall in price on the 18th of December, the day of scheme of arrangement.

There are multiple other stocks, where the same behaviour has been observed.

So in scheme of arrangement, should a price adjustment be done?
If yes, then in what ratio?
 
#2
Hi,

Should price adjustment be done in scheme of arrangement as it is done in case of bonus/split/rights issue?

To give an example, below is the case of "Zee Entertainment"

Scrip Code : 505537 Company: ZEE ENTER

Corporate Actions

Purpose Ex-date Book Closure/Record Date
Scheme of Arrangement 18/12/2006 BC 24/12/2006-28/12/2006

And the price history is....

Date Open High Low Close Volume
14 December 2006 339.95 357.85 334.00 353.30 2061840
15 December 2006 358.90 359.00 335.00 341.00 4832640
18 December 2006 249.00 297.80 249.00 272.20 3447841
19 December 2006 273.00 278.80 265.00 272.95 1428623

There is steep fall in price on the 18th of December, the day of scheme of arrangement.

There are multiple other stocks, where the same behaviour has been observed.

So in scheme of arrangement, should a price adjustment be done?
If yes, then in what ratio?
Can anyone reply to this post, I am also looking for the answer