Triveni Engineering & Industries Ltd. (TEIL) has issued an announcement detailing the allocation of the cost of acquisition for equity shares following a Scheme of Arrangement. This allocation affects shares of TEIL and the new entity, Triveni Power Transmission Ltd. (TPTL), impacting shareholders’ basis for capital gains tax calculation. The breakdown shows 86.60% of the cost attributed to TEIL shares and 13.40% to TPTL shares.
Shareholder Cost Allocation Announced
Triveni Engineering & Industries Ltd. (TEIL) has officially communicated the allocation of the cost of acquisition for equity shares. This follows a significant Scheme of Arrangement involving TEIL, Sir Shadi Lal Enterprises Ltd., and Triveni Power Transmission Ltd. (TPTL). The announcement provides clarity for shareholders on how the cost basis is distributed between the shares of the demerged company (TEIL) and the resulting company (TPTL).
Key Allocation Figures
As per the terms of Sections 73(1) of the Income-Tax Act, 2025, the cost of acquisition for equity shares has been allocated as follows:
- Triveni Engineering & Industries Limited: 86.60% of the total cost of acquisition.
- Triveni Power Transmission Limited: 13.40% of the total cost of acquisition.
The sum of these allocations represents 100.00% of the total cost. This information is vital for shareholders in determining their capital gains or losses upon future disposal of these shares.
The company has made this communication available on its website, www.trivenigroup.com, for public access and record-keeping.
Source: BSE
