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Corporate Action Calculator

Share Exchange Ratio Calculator

Translate an official merger or amalgamation swap ratio into exact and whole shares, isolate the fraction and estimate the value of each consideration component.

Learn the concept firstWhat Is an Amalgamation? Meaning, Process and Examples→
Merger entitlement workspaceOfficial ratio · fraction rule · demat reconciliation · value research
01
Holding on the record dateUse your demat statement and the final eligibility date
02
Official scheme termsCopy the sanctioned ratio and fraction clause exactly
Quick ratio
03
Actual allotment and recordReconcile the estimate with broker and trustee records

Results and every research view update automatically.

Your exchange resultOfficial ratio converted into an investor record
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Exact entitlement——
Expected / actual credited——
Actual economic consideration——
Value change vs old holding——
Mathematical fraction——
Credited-share value——
Fixed cash consideration——
Actual fraction settlement——
Investor Research Canvas BetaFollow the old holding into credited shares and fractional settlement.
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On a small screen, swipe inside the chart to inspect each value.

Exchange factor—
Old reference holding value—
Break-even new-share price—
Demat difference vs scheme estimate—
Original acquisition cost entered—
Indicative fraction cost basis—
Indicative continuing cost—
Carried acquisition date—
Read your result

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Tax continuity is conditional—not automatic

A qualifying share-for-share amalgamation into an Indian company can carry acquisition cost and holding period into the new shares. Cash terms, non-qualifying structures and fractional settlements need scheme-specific review; this workspace does not declare a transaction tax-free.

Use the final sanctioned scheme, record-date eligibility, allotment notice, demat credit and trustee statement. Market-price inputs are research scenarios and never replace the approved ratio or fairness opinion.

INVESTOR FIELD GUIDE

From sanctioned ratio to verified investor record

A share exchange has three different truths: the ratio approved in the scheme, the allotment mathematics it produces and the shares or cash that finally reach you. Keep them separate and the result becomes easy to explain, reconcile and revisit.

01

A four-step workflow that protects the record

Start with primary documents and finish with the broker statement—not a market-price guess.

01Confirm eligibility

Use the eligible old shares on the final record date.

02Copy official terms

Enter the ratio direction, fixed cash and exact fraction clause.

03Calculate entitlement

Old shares × New ratio ÷ Old ratio

04Reconcile the outcome

Compare expected shares with demat credit and trustee cash.

02

The fraction clause changes the final credit

A decimal entitlement is mathematics; it is not automatically a fractional security in a demat account.

TRUSTEE OR CASHWhole shares credited; fraction pooled or sold

Record the cash only when the trustee or company confirms the actual settlement.

PUBLISHED ROUNDINGDown, nearest or up are different rules

Select the one written in the sanctioned scheme; never infer it from the credited quantity alone.

UNSPECIFIED OR RESEARCHKeep the exact entitlement visible

Use Mathematical only until the final allotment or fraction notice supplies the operational rule.

WORKED RECORD

253 old shares at an official 3:10 ratio

The exact entitlement is 75.9 new shares. Under a trustee or round-down clause, the estimated demat credit is 75 shares and the 0.9 fraction remains a separate settlement record. At a ₹800 reference price, those 75 credited shares are worth ₹60,000. Fixed cash of ₹5 per old share adds ₹1,265; actual fraction cash is added only when entered.

Eligible holding253× 3 ÷ 10Exact75.9→Expected credit75

Official ratio is not a live price ratio. Market prices can test the present economics, value change and break-even point. They cannot manufacture a sanctioned ratio or prove whether the valuation was fair.

Tax continuity is conditional. A qualifying share-for-share amalgamation may carry cost and holding period into the new shares, while cash, fractions or a non-qualifying structure can require separate treatment. Verify the final facts before filing.

DOCUMENT CHECKLIST

Keep the evidence behind every share and rupee

A compact record now makes a later sale, tax-lot review or registrar query much easier.

  • Sanctioned scheme and amendments
  • Record and effective-date notices
  • Ratio valuation and allotment communication
  • Demat credit statement
  • Trustee or fraction settlement advice
  • Original contract notes and acquisition date
03

Learn the event, then verify the law

Use the guide for mechanics and primary sources for the final record.

LEARNWhat is an amalgamation?→AFTER A SALECapital Gains Tax Calculator→
CURRENT TAX LAWIncome-tax Act, 2025 — amalgamation continuity

Review the official continuity provisions and the current Act before relying on carried cost or holding period.

Open Section 70 ↗
REAL FRACTION CLAUSEDr Agarwal scheme — 23:2 and trustee sale

A primary filing showing why exact entitlement and final demat credit must remain separate.

Open the NSE filing ↗

Frequently asked questions

What does a share exchange ratio of 3:10 mean?

It means the sanctioned scheme offers three new-company shares for every ten eligible old-company shares. For example, 253 old shares create an exact mathematical entitlement of 75.9 new shares before the published fraction rule is applied.

Which shares qualify on the merger record date?

Eligibility follows the final scheme, effective-date notices and record-date process. Use the old shares shown as eligible in your demat or registrar record, and verify late purchases, suspended settlements or special holdings from official documents.

Why can exact entitlement differ from the demat credit?

Exact entitlement is the ratio mathematics. The expected credit then applies the scheme’s rounding or fraction clause, while actual credit is what reaches the demat account. Entering the actual quantity makes any difference visible instead of silently overwriting it.

How are fractional shares handled in an amalgamation?

The approved scheme decides. It may direct a trustee to aggregate and sell fractions, round down, round to the nearest whole share, round up or use another mechanism. Choose only the method stated in the final document and record cash separately when received.

What is the difference between fixed cash and fraction cash?

Fixed cash consideration is paid for every eligible old share under the scheme. Fraction cash is a separate settlement for a fractional entitlement, often after trustee sale. The calculator keeps them apart so the economic bridge matches the investor record.

Does market price determine whether the exchange ratio is fair?

No. The official ratio comes from the sanctioned scheme and its valuation process. Reference prices only create a current economic scenario, price-sensitivity view and break-even estimate; they do not replace a valuation report or fairness opinion.

Is a share-for-share merger automatically tax-free?

No. Tax continuity depends on the legal structure, qualifying conditions, residence of the amalgamated company, the consideration mix and applicable law. Cash and fractional settlements may require separate review. The calculator intentionally does not label the event tax-free.

How should acquisition cost and holding period be recorded?

A qualifying transaction may carry original cost and holding period into the new shares, but the exact treatment is scheme- and law-dependent. Keep contract notes, the sanctioned scheme, allotment notice, demat credit and trustee statement, then verify the continuing and fractional cost records before filing or selling.

What should I do if the credited shares do not match the estimate?

Check the entered eligible holding, ratio direction, fraction rule and any corporate-action adjustments first. Then compare the registrar or company allotment statement with the demat credit. If the mismatch remains, contact the broker, registrar or company rather than forcing the calculator to reconcile.