Deal Structuring
Tag-Along Rights
A minority shareholder's contractual right to participate in a sale on the same terms if a majority shareholder sells its stake, preventing the minority from being left behind on worse terms.
Seller Example
A minority shareholder holding 15% of a Lucknow FMCG distribution business exercises tag-along rights when the majority promoter agrees to sell his 60% stake for ₹18 Cr, forcing the buyer to also purchase the minority stake at the same ₹30/share price rather than leaving the minority holder locked into a business now controlled by an unfamiliar buyer.