IMPACT OF DE-MERGERS ON CREATION OF SHAREHOLDER VALUE: CASE STUDY OF SELECTED INDIAN COMPANIES

Abstract

This article discusses two of the cases of demergers in Indian capital markets with a historical perspective, these seven cases are illustrative in nature to help analyze and understand the perspective of this study. These cases are both from within the period of this study as well as beyond the period of this study. The cases of demerger within the period of study have been analyzed in detail; however, because of aggregation of all demergers within the period isolated cases could not be discussed in earlier chapters. This paper tests effects of Indian demerger transactions. This study gives a better understanding of demergers as a transaction and practitioners would be able to guide their clients to take an informed decision surrounding the demerger announcement. For researchers, this study throws light on a new research paradigm and offers a robust methodology that can be used for various corporate restructuring transactions. This study would also help researchers to do a cross-sectional analysis of several corporate restructuring transactions.