Stuck Somewhere?

My Tickets
Most Asked
My Account
Stocks, F&O & IPO
Payments & Withdrawals
Mutual Funds
FDs
US Stocks
En
हि
IPO
Reports
Margin
Charges
Demat Account
Futures & Options
Investments
Corporate Action
Pledge
SGB
Others

What happens to my shares during the merger?

Loading...
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.
CONTACT US
Was the answer helpful?