I hold shares of ujjivan small finance bank and a recent news is out that states RBI has granted approval for merger with parent company Ujjivan financial services.
Whilst I did buy the stocks of USFB for long term, Could someone please help to understand what would happen to the stocks once the merger happens? Do I get stocks of parent company ?
I am not an expert but in my view, when the merger happens and based on the merger parameter you will automatically get the new shares (if the name changes or anything like it declared) in your demat account. There is no need for you to do anything.
This is similar to many PSU banks who got merged with others, the shareholders got the new shares based on the revised values.
I repeat, I am not an expert and hope other experts in this forum will clarify.
Its a reverse merger. The shareholders of Ujjivan Financial Services will get shares of USFB…
Share swap ratio isn’t decided yet.
As a shareholder of USFB, you will have to do nothing.