What is a reverse merger?

A reserve merger refers to a private company taking over a publicly-traded company or when an entity buys out its parent company. In the first case, it is one of the ways for a private company to go public. And in the second case, the reserve merger is done to create a larger company. For instance, in 2002, parent company ICICI merged with ICICI Bank to create a large bank that can cater to multiple segments.

Courtsey : Upstox (start Karke Dekho)

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