De-listing company - what an investor needs to know

Hi.

When a company decides to de-list – an investor who has its shares, selling back to the company is via the normal process? will the minority investors get intimation of Board decisions on steps to be taken?

Thanks for your responses.
Madhu.

Hi Madhu

A delisting that is of voluntary nature can only occur if shareholders holding up to 90% of the share capital agree to the delisting offer made by the company. The shareholders at times may not agree to delist, if they foresee a rise in the price of the shares or are not happy with the current offer made by the company to buyback the shares as they feel the shares are worth much more.

We recently published an article on same topic that you can read here for better clarification: https://tradebrains.in/delisting-of-shares/

Hi. Thanks for your response.

Hi,

Thanks for your response and I have read your delisting of shares article. It’s given the clarity about delisting shares.

Thanks,
SteveGood,

GWC India