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The following table gives cost data of select stock prices on 3rd Dec 2003 in two markets, BSE of India and NQE of Kya Kya island. Closing stock refers to the price at the close of trading hours and opening stock to the price at the beginning of the day. The currency of Kya Kya is # and the exchange rate is # = Rs 11.
In an M&A deal SIFY is purchased by its parent company SATYAM which purchases 15% of SIFY’s equity shares. Total SIFY’s equity shares is 1 million. How much does Satyam pay in Rs. for the stake if 50% of its purchases were on BSE’s opening price and balance on BSE’s closing price?
Given, total shares of SIFY= 1000000
Shares purchased by SATYAM= 15% of 1000000= 150000.
Now, 50% of the shares were purchased at BSE's opening price i.e. Rs. 232 and 50% of the shares were purchased at BSE's closing price, Rs. 247.
So, total amount paid by SATYAM= 75000*(232)+ 75000(247)= Rs. 75000(479)= Rs. 35925000 which is close to Rs. 36 millions.
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