In this acquisition of Videocon, 96% of the money of the lenders to Videocon will be lost. At the same time, its shares will not be available for sale in the stock market. After this, the value of the shares of Videocon will become zero.
Shareholders of the two listed companies of the debt-ridden Videocon Group will not get anything after the delisting. The value of these two companies of Videocon Group alone is not enough to cover the outstanding loan. Videocon Industries Ltd. and Values Industries Ltd. will be delisted from the stock exchange as part of the approved resolution plan for the insolvent-Videocon group
The companies said in a public notice that no offer would be made to any shareholder of the two companies at the time of the expiry of the listing of the shares. As per the regulations of the market regulator Securities and Exchange Board of India, a company which wants to delist from the stock exchanges has to make an offer to the existing shareholders including public shareholders.
The reason given by the company
Values Industries Limited said, the aggregate value of the Videocon Group company is not sufficient to repay the debt of the company’s financial creditors, hence no benefit will be passed on to the equity shareholders. Hence they will not be entitled to receive any payment. The company further said that in such a situation the equity shareholders of Videocon Group need not hand over their shares to the successful resolution applicant. The successful solution applicant is Anil Agarwal’s Tin Star Technologies.
company getting unlisted
Videocon Industries has set a record date of 18 June 2021 for delisting of shares from BSE and NSE. NCLT has approved Anil Agarwal’s Twin Star Technologies to buy Videocon for Rs 3,000 crore. Twin Star is a unit of Vedanta Group and it is going to make an advance payment of Rs 500 crore within 90 days. The balance amount will be paid in the form of Non-Convertible Debentures (NCD) within some time.
Shareholders will not get any profit
Complying with the NCLT order, Videocon has also moved towards delisting the company’s stock from the stock market. In this acquisition of Videocon, 96% of the money of the lenders to Videocon will be lost. After June 18, the shares of Videocon Industries will not be available for sale in the stock market. After this, the value of the shares of Videocon will become zero.
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