The market is not too happy with the merger decision of Pioneer Distilleries with United Spirits Ltd (USL).

USL yesterday informed the exchanges that its Board has approved the amalgamation scheme. The scheme now awaits requisite approvals from statutory authorities including SEBI, BSE, NSE, respective shareholders and creditors of both the companies.

As per the scheme of amalgamation, non-promoter shareholders of Pioneer will get 10 equity shares of USL for every 47 shares held. And the shareholders of Pioneer do not seem to happy with this ratio, which is getting reflected in the stock price.

The stock has been having a pretty volatile run for the past few days, oscillating between UC and LC. Today too, it hit the 5% UC at Rs.144.40 and then the 5% LC at Rs.130.70, where it now stays.