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In the biggest ever merger in India Inc, mortgage lender HDFC and India's largest private lender HDFC Bank had agreed to merge in early April. HDFC shareholders as on record date will receive 42 equity shares of HDFC Bank for every 25 equity shares held in HDFC.

IIFL Securities said based on current prices, the price ratio is trading at a discount of ~3%.

FPIs hold ~68.56% and ~66.55% in HDFC and HDFC Bank, respectively. With an FPI limit of 74%, HDFC Bank’s foreign investability room now stands at ~16%

The merger between Shriram Transport Finance and Shriram City Union Finance is being done in a swap ratio of 155:100.

“Currently, the cash (SCUF) and Futures (SHTF) price ratio is trading at a discount of ~10.7% below the swap ratio,” IIFL said.

The merger between JSW Steel and JSW Ispat Special Products was announced last month. According to the swap ratio of the merger, the shareholders of JSWISPL as on the record date will receive 1 equity share of JSTL for every 21 equity shares held in JSWISPL.

Based on current prices, the price ratio is trading at a discount of about -11%, IIFL said.

Larsen & Toubro Infotech & Mindtree, both subsidiaries of Larsen & Toubro, had last month announced a mega-merger to create an efficient and scaled-up IT services provider, exceeding $3.5 billion in combined revenue.

As part of the share swap ratio, shareholders of Mindtree will receive 73 equity shares of LTI

for every 100 equity shares held in Mindtree.

Earlier in March, Tata Consumer had announced a reorganization plan including the demerger of plantation business of Tata Coffee into TCPL Beverages & Foods Limited (TBFL), a wholly owned subsidiary of Tata Consumer, and the merger of the remaining business of Tata Coffee, consisting of its extraction and branded coffee business with Tata Consumer.

Tata Coffee shareholders will receive 3 equity shares of Tata Consumer for every 10 equity shares held in Tata Coffee.

IIFL Wealth said based on the current price, Tata Coffee shares are trading at a discount of 9.5% vs Tata Consumer. It doesn’t recommend any merger arbitrage trade at this juncture.

Leading to the creation of a multiplex behemoth, PVR and Inox Leisure had decided to merge in March this year. As a consideration for merger, the shareholders of Inox Leisure will receive 3 shares of PVR for every 10 shares held in the company.

Based on Friday’s closing, Inox Leisure shares were trading at a discount of ~8.5% vs PVR.

The merger process is expected to take around 9-10 months for completion.

In December last year, Sony Pictures Networks India Private Limited (SPNI) had announced signing of a definitive merger agreement with Zee Entertainment Enterprises Ltd (ZEEL). If it goes through, the merger will create India’s second-largest entertainment network by revenue. Sony will hold a majority stake in the merged company.

“On pro forma financials, the stock trades at a reasonably attractive 16x FY23ii EPS. The stock could see material re-rating on completion of the Sony merger but weak financials and the lack of triggers could limit near-term upside. Our new Mar23 (target) based on 75% probability of merger is Rs 362,” IIFL said.

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