Max | 23.19% |
---|---|
Min | 3.53% |
Average | 15.46% |
Above I have shared the max, min and average arbitrage in the past year for the Ujjivan twins. Just 1 or 2 weeks back it was down to low single digits, now it is back to 15%.
If the merger materializes in the next 2-3 months it is a quick 15% return you can make theoretically. I say theoretically because everyone in the market knows this, during the merger process there will be a month where there won’t be USFB shares in your DEMAT to exit. When the USFB shares get credited there “might” be a fall for a day or so as every arbitrageur who are not in Ujjivan for the long term will try to exit.
This was witnessed in Equitas as well, IIRC it fell 10% on that day but recovered later. So to get the benefit for the entire 15% or more, you may need to either be very quick to exit, or wait for some more time for the price to normalize.
Good thing is the fundamentals should keep supporting the prices.
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