This is strictly for those who own Grindwell Norton stock, and intend to keep it for the next couple of months.
Saint Gobain Sekurit will merge with Grindwell Norton. 17 shares of Saint Gobain will be eligible for 1 share of Grindwell Norton.
Saint Gobain shares are available on BSE at around 14.20 Rs. Grindwell Norton Shares are currently selling around Rs. 255-258.
If you own Grindwell Norton Shares, you could buy Saint Gobain Shares at 14.20 (meaning the price of 1 GN share is then 14.2*17=241 Rs.), and sell Grindwell Norton at 255, which would give you a 14 Rs. profit within a couple of months, once the Saint Gobain Shares are exchanged. This works out to over 5% return, after transaction fees.
Unfortunately, both shares are thinly traded. And no futures to exploit. If you own GN shares for sure, then makes sense to do this (unless considerations of ST capital gains are prevalent).