On 3rd July 2023 IDFC announced merger with IDFC First Bank on a 1:1.55 Ratio. So post merger for every 100 shares of IDFC, share holders get 155 shares of IDFC First Bank. This opened up an arbitrage opportunity and this chart shall show the arbitrage value.
The Thick blue line is the IDFC First Bank's value of IDFC share price.
I'm trying to figure out a way to show the opportunity in percentage. Can someone help? say for example IDFC arbitrage value is available at 74 when IDFC FB is 80 then the arbitrage value is 7.5%. How can I chart it? Do I need to use Scripts?
Rajaraman-KPDMM
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the difference between the orange line and the blue line is the arbitrage opportunity