Hey there, fellow Indian investors and business enthusiasts! Let’s dive into the intriguing world of Indian business news. Picture this – a tale of companies emerging from the ashes of insolvency, only to be faced with a new challenge on their path to relisting in the stock exchanges.
In the bustling financial hub of Mumbai, a wave of companies that have successfully completed the NCLT-led corporate insolvency resolution process is finding itself at a crossroads. These firms, eager to relist and regain their foothold in the market, are encountering a major stumbling block – ‘unrealistic’ price bands that are distorting their true value.
Enter Martin Golla, a prominent lawyer in Mumbai specializing in insolvency and bankruptcy law. He sheds light on the predicament faced by these companies, emphasizing the critical importance of securing accurate valuations during the relisting process. Without fair pricing, attracting capital for future growth becomes a Herculean task for these resilient entities.
Among the impacted players is Swan Defence and Heavy Industries (SDHI), the proud owner of India’s largest private shipyard. Despite its relisting in January 2025 post-restructuring, SDHI finds itself grappling with value erosion triggered by the imposition of rigid price bands by the National Stock Exchange of India (NSE) and BSE Ltd.
Now, here’s the twist in the tale – a SEBI circular from 2012 prohibited price bands on the first day of relisting, yet the exchanges seem to be following a different tune. This discrepancy has led to an unsettling scenario where SDHI shares are being valued at a mere ₹35.99 per share, a far cry from their actual book value of over ₹1,500.
Imagine the frustration of long-standing investors who had weathered the insolvency storm with hopes of a price resurgence post-relisting, only to be met with disillusionment. These investors, holding onto their shares with bated breath, are now urging SEBI to revamp the price discovery mechanism to reflect the true worth of their investments.
As we navigate through the dynamic landscape of Indian business, it becomes evident that restoring credibility and transparency in the relisting process is paramount. It’s a call to action for the authorities to intervene, rectify the pricing anomalies, and pave the way for a fair and thriving market ecosystem.
So, dear readers, let’s stay tuned as the saga of NCLT-led firms and their tryst with unrealistic price bands unfolds in the ever-evolving tapestry of the Indian business realm. Exciting times lie ahead, filled with challenges and opportunities for those brave enough to navigate the winds of change.
Source: Business News Today, Latest Finance News | The Hindu