Haven’t previously participated in any merger. There are two mergers upcoming on my portfolio: HDFC-HDFC Bank and LTI-Mindtree.
Lets talk about HDFC-HDFC Bank. Here holders of 25 shares of HDFC will be allotted 42 shares of HDFC Bank. This means that 3 shares of HDFC Bank is equivalent to 1.786 shares of HDFC. So, if someone has 2 shares of HDFC, he will get 3 shares of HDFC Bank, and will get cash worth 0.214 part share of HDFC in his registered bank…
Is the above understanding correct?
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