Mergers and Acquisitions (M&As) have become a symbol of the new
economic world. All most every day one reads of a new merger and
acquisition doing the rounds of the corporate world. Corporate world is in
the midst of a restructuring wave to meet the challenges of global
competition and global economy. Indian companies are changing their
strategic operations through their restructuring processes to acquire the
required efficiency to survive into global economy. Mergers and
Acquisitions are the best and effective route to increase the corporate
efficiency and to maximize the shareholders value.. This article tests
whether value based frameworks are applicable in India or not. So, an
attempt has been made in the current study by using various valuation
models like, Economic performance measures (EVA), market
assessment measures (MVA) and traditional measure (RONW). This
paper will cover the different valuation methods used to measure
shareholders’ value creation of three Automobile companies merged
and it also judges the pre- and post- merger financial performance and
economic value addition to their shareholders.

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