ReNew Energy Global plc T.RNW

RNW below $13.00

[deanstyles]

RNW went ex-dividend on Oct 14 so $13.00 should be the floor (October cash payout).

With TA at $12.70 (x1.0337) the swap value is $13.13 > $13.00 (less transaction fees if you sell on swap day).

 

If TA drops to $12.26 then the swap value is $13.00 [identical to the cash payout].

I believe (correct me) that TA has enough shares to cover half of the outstanding RNW shares.

That means TA could force the stock swap on 50% of the shares and pay $13 cash for the rest.

 

What if TA was trading at $12 on swap day?

($12.00*1.0337 + $13.00)/2 would mean an RNW value of $12.78

 

I think the market expects TA shares to drop further and RNW below $13.00 refects that.