ICL is proposing to take over SVL with an objective to diversify. While ICL growth rate is 18%, the SVL growth rate is 15%. Both the companies pay…

ICL is proposing to take over SVL with an objective to diversify. While ICL growth rate is 18%, the SVL growth rate is 15%. Both the companies pay dividend regularly. The summarized Profit & Loss Account of both the companies are as follows: in Crores Particulars ICL SVL Net Sales 9090 3000 PBIT 5960 1440 Interest 1500 50 Provision for Tax 2880 890 PAT 1580 500 Dividends 470 304.35 ICL SVL Fixed Assets Land & Building (Net) 1440 380 Plant & Machinery (Net) 1800 700 Furniture & Fixtures (Net) 60 3300 20 1100 Current Assets 1550 1160 Less: Current Liabilities Creditors 460 260 Overdrafts 70 20 Provision for Tax 290 100 Provision for dividends 120 940 100 480 Net Assets 3910 1780 Paid up Share Capital (10 per share) 500 250 Reserves and Surplus 2100 2600 1320 1570 Borrowing 1310 210 Capital Employed 3910 1780 Market Price Share (₹) 175 98 Cost of Equity 25% 20% ICL's Land & Buildings are stated at current prices. SVL's Land & Buildings are revalued three years ago. There has been an increase of 7.65 per cent per year in the value of Land & Buildings. SVL is expected to grow @ 18 per cent each year, after merger. ICL is interested to do justice to the shareholders of both the Companies. For the swap ratio weights are assigned to different parameters by the Board of Directors as follows: Net Worth Per Share* 25% EPS (Earning per share) 30% Share price as per Dividend Growth Model 20% Market Price per share 25% * After required adjustment. You are required to suggest the swap ratio based on above weights and total number of shares. Note: Round off calculations upto two decimal points.