Hey there, fellow investors and business enthusiasts! Imagine this – you’ve successfully navigated the insolvency resolution process led by the National Company Law Tribunal (NCLT), ready to relist your company on the stock exchanges for a fresh start. But wait, hurdles await in the form of ‘unrealistic’ price bands set by the exchanges, causing a stir in the Indian business landscape.
Picture this scenario: Companies emerging from NCLT-led insolvency proceedings are struggling to fetch fair valuations during relisting, thanks to these alleged ‘unrealistic’ price bands. According to Martin Golla, a savvy lawyer specializing in insolvency and bankruptcy law, this predicament is hindering companies’ ability to attract the necessary capital for their growth journey.
Recently, Swan Defence and Heavy Industries (SDHI), boasting India’s largest private shipyard, faced the music upon relisting in January 2025. Despite SEBI’s 2012 circular prohibiting price bands on relisting day one, the National Stock Exchange of India (NSE) and BSE Ltd. reportedly continue to stick to this system, leading to an eye-popping price discovery of ₹35.99 per share, a stark contrast to the company’s book value exceeding ₹1,500.
The SDHI investors, who held on through thick and thin expecting a price revival post-relisting, find themselves in a tight spot. Some have taken the matter to SEBI, advocating for a fairer price discovery mechanism to determine the shares’ true value.
As Indian investors, entrepreneurs, and market watchers, how do we navigate these challenges and opportunities amidst the evolving business landscape? Can we expect the authorities to step in and restore the credibility of the relisting process? What lessons can we draw from the SDHI saga for our own investment and business strategies?
Let’s stay tuned as we delve deeper into the nuances of Indian business dynamics, exploring the intersections of regulation, corporate resilience, and market realities. It’s not just about numbers; it’s about the stories behind them, the journeys of companies striving to find their footing in the ever-changing Indian economy.
So, dear readers, buckle up for a roller-coaster ride through the twists and turns of the Indian business world. Together, let’s uncover the value hidden beneath the surface and seize the investment opportunities that lie ahead. After all, in the realm of Indian business, every challenge is but a stepping stone towards greater success and resilience.
Let’s embark on this exciting journey of exploration and discovery, where every setback is a setup for a remarkable comeback!
Source: Business News Today, Latest Finance News | The Hindu