Top Delisting stocks from BSE.

Stock delisting from the exchange is often bad news for retail shareholders. They need to take quick action regarding their stocks.


What is Delisting?

The removal of the stocks of a listed company in the form of a stock exchange, such as the National Stock Exchange (NSE) or Bombay Stock Exchange, is called Delisting.

The market regulator, India’s Securities and Exchange Board (SEBI), entirely governs the Delisting process; you cannot trade them in this process.

The list of companies that are delisted from the exchange for various reasons is voluntary and Involuntary, which include:

  1. The company has an insufficient market capitalization with an excessive stock price fall.
  2. It has filed for bankruptcy.
  3. The company needs to comply with the exchange or the regulator’s requirements.

Top Delisted Companies

Company Delisted Date
MIDEAST 24 February 2023
Penta media

Graphics Ltd

24 February 2023
VISHVAKAR INV 24 February 2023
Mefcom Argo Industries Ltd 24 February 2023
Sanghi Corporate Services Ltd 24 February 2023
Sriyansh Steel Ltd 24 February 2023
Vertical Industries Ltd 24 February 2023
Bee Electronic Machines Ltd 24 February 2023
Sun Source India Ltd 24 February 2023
Detroit Industries Ltd 24 February 2023
Nu Tech Corporate Services Ltd 24 February 2023
Geefcee Finance Ltd 24 February 2023
Texplast Industries Ltd 24 February 2023
Gangotri Iron & Steel Company Ltd 24 February 2023
Auroma Coke Ltd 24 February 2023
Global Land Masters Corporation Ltd 24 February 2023
TSL Industries Ltd 24 February 2023
South East Agro Industries Ltd 24 February 2023
Bluechip Stockspin Ltd 24 February 2023
NovaGold Petro Resources Ltd 24 February 2023
Sheetal Bio Agro Tech Ltd 24 February 2023
Dina Iron & Steel Ltd 24 February 2023
Ram Minerals and Chemicals Ltd 24 February 2023
Roselabs Ltd 24 February 2023
Womens Next Loungeries Ltd 24 February 2023
Dwitiya Trading Ltd 24 February 2023
Tej Info ways Ltd 24 February 2023
Pincon Lifestyle Ltd 24 February 2023
Funny Software Ltd 24 February 2023

Fate of Shareholders in case of Delisting?

As a shareholder of a delisted company, you cannot sell or exchange those shares. But you can sell them over the counter by making deals through other channels.

Let’s have a look at these two:

  • Voluntary Delisting
  • Involuntary Delisting

Voluntary Delisting:  It is the listed company that opted for the removal of its securities from the stock market exchange.

It has some reasons which include:

  1. Mergers and amalgamation with another company.
  2. Non-performance in respect of the share price.

If you want the share of a company to opt the Delisting, then the company is required to give you two options:

Reverse book building to sell your shares back at the company.

The promoters must offer to buy back the shares by sending a letter to all eligible shareholders. The promoter will buy the shares by reversing the book building.

In the next option, you have the tendering of the shares; the maximum number of shares offered determines the purchase price.

Share offers by the shareholder must exceed a certain limit before Delisting can be considered successful.

Keep your shares safe until you find a buyer.

As you keep your shares until you find a buyer, over the counter market, if you are unsuccessful in selling them via the reverse book-building or exit window period, you should keep them until you send them.

It isn’t easy to sell the shares that have been delisted because traders tend to stay away from such major negative events.

As most companies choose the delist for the expansion related to them, which they will offer to the investors at attractive prices, this can lead to significant gains.

The investor will gain a temporary advantage as they will know the stock price, which will drop after the buyback window closes.

As most companies choose the delist for the expansion related to them, which they will offer to the investors at attractive prices, this can lead to significant gains.

Involuntary Delisting

This category involves removing the listed company’s shares from the stock exchange due to their non-compliance with the listing guidelines, low share price and late filing of reports.

The promoters are also forced to buy back the shares at a value determined by an independent evaluator. As the shareholders may hold on to your shares, their value is again highly likely to fall post-delisting.

Holding on to the stocks expecting a revival of the company, which is in terms of stocks of the company getting relisted on the stock exchange, this can only be the possible SEBI permits that setting out the guidelines for relisting such shares.

After 5 years of the delisting date, the stock is relisted from voluntarily delisted. However, the company whose own accord has been delisted must wait ten years before it can be relisted on the exchange.

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