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What happens to my shares during the merger?

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There are different types of Merger and the treatment of your shares depends on it.

Let's consider an example where Company A is acquiring Company B through Merger.

Stock-for-Stock Merger: Shareholders of the acquired company B will receive shares of the acquiring company A or the new merged company. The merger ratio defines how many shares of acquiring company A shareholders will receive for each share of acquired company B shareholders. 

If the merger ratio is 1:2, then for every one share of Company B, the shareholders will receive two shares of Company A.

Cash-and-stock Mergers: In some situations, shareholders of the acquired company B may receive both cash and shares in the acquiring company A.

Cash Merger: In certain mergers, shareholders of the acquired company B may receive cash in exchange for their shares. The cash amount is usually specified in the merger agreement and may be based on a predetermined price per share

On Groww, you can visit the ‘Merger’ section in the share’s Holdings details to know about the Merger details.
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