Knowledge Base

Mergers take significantly longer to complete than other corporate actions. Unlike a bonus issue or stock split that reflects within days, a merger involves multiple regulatory approvals and the entire process can take anywhere from a few months to over a year from the announcement date.

Why does it take so long?

A merger needs approval from:

• Both companies’ boards and shareholders
• Stock exchanges
• SEBI
• NCLT (National Company Law Tribunal)
• Sometimes the Competition Commission of India (CCI)

Each of these stages has its own timeline and the process moves sequentially.

Once the merger receives all approvals and becomes legally effective, the company sets a record date. Shareholders on record as of that date receive the new shares. Credits typically happen within a few weeks of the effective date.

What happens to your shares in the meantime?

Your original shares continue to trade normally on the exchange until the merger is effective and the stock is delisted. You can buy or sell them during this period as usual.