After Ambani’s ‘buy 1 get 1 offer’ for shareholders of Reliance Industries (demerger ratio of 1:1), investors were expecting ITC also to opt for a 100% vertical split. But ITC management chose to keep 40% ownership with itself and give away the remaining 60% to existing shareholders.
Understanding the high EV to MCAP Ratio
The EV to MCAP ratio assesses a company’s valuation by factoring in debt and cash reserves. A high ratio signals high leverage or strong cash