Mergers and acquisitions are now commonplace in the Indian economy. In earlier times stringent laws were put in place to prevent the takeover of smaller companies by the larger ones. Thus the smaller firms churning out sub-standard goods and services got a semblance of protection and were able to thus survive in the market.
All that has changed with the liberalization of the Indian economy. The protection given to such firms has been taken away and almost all the Indian companies were exposed to the globalisation forces and thus forced to face up to the competition from the global players. This one bold policy decision was a great help to the Indian consumer who has been forced to pay much for shoddy goods and services.
Thus in recent times it is possible for a big company to take over a smaller one through a valuation process. However the governing board of the smaller firm must approve the merger. In the real estate sector as well the
Builders for Sale are those firms that are being sold by the entrepreneurs who are either moving into other destinations or are diversifying into other sectors.
Before a merger takes place, the buyer will always try to take a majority stake in the shares of the builder being put up for sale. It may take several months for this process to get completed. While the promoters of the small builder may sell off their stake to the new developer, at most times, the freedom to make major changes in the property under development will come only when the entrepreneur is able to enjoy a majority stake in the venture. During such a situation the share price in the open market will certainly move upwards.
Trying to be part of a major development 
