Bhupen India Ltd. (BIL) is a listed company and the Board of directors of BIL has authorised Managing Director for evaluating the proposal for acquisition of Sahil India Ltd. (SIL). The financial positions of BIL and SIL

Bhupen India Ltd. (BIL) is a listed company and the Board of directors of BIL has authorised Managing Director for evaluating the proposal for acquisition of Sahil India Ltd. (SIL). The financial positions of BIL and SIL are given below: BIL SIL No. of equity shares 10,000 6,000 Market price per share (₹) 60 36 Market capitalisation (₹) 6,00,000 2,16,000 BIL is willing to pay ₹3,32,000 in cash for the acquisition of SIL. If SIL's market price reflects only its value as a separate entity, calculate the cost of acquisition when acquisition is financed by cash. Give your comment, what would be the impact on shareholders of BIL when the cost of acquisition becomes negative.