Upcoming Merger & Demerger

The Upcoming Mergers & Demergers page provides a free, accessible view of the latest corporate restructuring events across the Indian stock market. The following details are available:

• Complete corporate action data: Every row displays the date, stock name, event, LTP at record date, announcement day, and LTP at announcement.
• Market cap filters: Easily sort the ongoing actions by LargeCap, MidCap, SmallCap, MicroCap, and SME segments.
• Sector filters: Filter the list by sectors including metals & mining, realty, construction, infrastructure investment trust, chemicals and many more.

Corporate restructuring through mergers and demergers is one of the most consequential events in a shareholder's experience with a stock. Unlike dividends or buybacks, which affect only returns, a merger or demerger changes what you own.

What is a Merger?

A merger is a corporate action in which two or more companies combine into a single entity. In India, the most common structure is an amalgamation where one company (the transferor company) merges its assets, liabilities, and operations into another (the transferee company) and subsequently ceases to exist as a separate legal entity.

Shareholders of the transferor company receive shares in the transferee company in exchange for their existing holdings, at a ratio defined in the merger scheme (i.e., the swap ratio). For example, a swap ratio of 3:1 means shareholders receive 3 shares of the acquiring company for every 1 share of the target.

What is a Demerger?

A demerger occurs when a company separates one or more of its business divisions or subsidiaries into a new, independently listed entity. Existing shareholders of the parent company typically receive shares of the newly formed entity (proportionate to their original holdings), while keeping their shares in the parent company.

Demergers are used when a conglomerate believes that separating a business unit will allow each entity to attract more appropriate valuations, improve management focus, or raise capital independently.

After a board announces a scheme, several regulatory and judicial steps occur leading up to the record date:

• No-objection certificate from stock exchange: The listed company submits the draft scheme to the stock exchange(s), which examines it under the applicable SEBI framework and issues an Observation letter/No-objection letter before the scheme is filed with the National Company Law Tribunal (NCLT).
• NCLT approval: The NCLT reviews the application for legal compliance, and either approves the application or holds hearings on it.
• Shareholder and creditor approval: The scheme needs to be approved by the shareholders and creditors of the companies.
• CCI (Competition Commission of India) clearance: If the proposed transaction falls under the category of combinations as per the Competition Act and does not come under any exemption, then it might be necessary for the parties to seek approval from the CCI.
• Record date announcement: It is announced in accordance with the approved scheme and applicable regulatory and exchange requirements. It determines the shareholders eligible for the specified entitlement.

The process can take several months and, depending on complexity and approvals, may take longer.

Each row in the Upcoming Merger Demerger table carries the following:

• Date: The record date of the merger or demerger event. It is the specific cutoff day set by a company to finalise its register of shareholders who are officially eligible to receive the benefits of that corporate action.
• Stock name: The BSE or NSE-listed company involved in the restructuring event.
• Event: Specifies whether the event is a merger or a demerger.
• LTP at record date: The last traded price of the stock on the record date.
• Announcement day: The date on which the company made the exchange filing disclosing the merger or demerger through an official board resolution.
• LTP at announcement: The last traded price of the stock on the announcement day.

The controls on this calendar help you filter the noise and find specific restructuring events efficiently:

• Filtering by market cap: Use the drop-down box to switch between different market capitalisations to find actions relevant to your risk appetite.
• Filtering by Sectors: If you are tracking a specific industry, select sectors to narrow down the list and spot sector-wide trends.
• Date Range: Narrows the table to events whose record date falls within a chosen window.
• Individual stocks: The search tab lets you search for specific company names in the table.

• Merger: When two companies merge together. The transferor company is dissolved, and assets and liabilities are transferred to the surviving company.
• Demerger: When a business unit of a company is spun off into a new company, and it is listed separately. The parent's existing shareholders also get shares in the new company.
• Swap ratio: The ratio of the number of shares of the surviving company that are received for each share of the merging company. Multiply your current number of shares by this ratio to get your new number of shares.
• Demerger ratio: The number of shares of the demerged entity that are issued to the parent shareholders for each share of the parent company.
• Record date: Date on which shares must be held and settled in the account to be eligible to receive the restructuring entitlement.
• Ex-date: The trading day from which the stock trades without the entitlement to the benefit of the merger or demerger. Shares purchased on or after this date are not eligible.

Tracking upcoming mergers and demergers on Dhan offers the following benefits:

• Unified view: All the merger and demerger events that are announced, in progress, and approved are consolidated across both NSE and BSE without switching between individual company pages or exchange filing portals.
• Announcement timeline visibility: The announced date column indicates when each announcement was published. By comparing this timeline with price, market participants can gauge how the market reacted to the announcement.
• Calendar integration: Manual tracking of events across SEBI or exchange portals is eliminated, and events with confirmed record dates can be tracked through Dhan's reminder system.