What happens to shares bought after record date post merger?

[ShubhS9]

@jaypatel

was wondering that what happens to balance shares one have which are bought after record date, as they are not entitled for conversion to absorbing company’s shares. ie, no shares of absorbing entity would be credited.

so in that case if someone bought X amount of shares post record date, what would happened to them once the entity cease to exist and last trading day is over?

The shares of company that is getting merged are suspended from trading from the record date onwards. So whoever bought the shares before suspension is eligible for getting the shares.

Take HDFC’s merger with HDFC Bank as example. The record date was set as July 13, 2023 and the shares also stopped trading from that day onwards. So whoever had bought shares of HDFC before July 23, 2023 would be eligible for getting shares of HDFC Bank.

@ShubhS9

The record date to determine the shareholders of HDFC Ltd. to whom shares or HDFC Bank will be allotted has been set as July 13, 2023. You can check the announcement here .

As a result of this, the shares of HDFC Ltd. will be suspended from trading on the stock exchanges from July 13, 2023 onwards