Comment on Stop Loss orders - Limit/Market

Karthik Rangappa commented on 03 Sep 2014, 12:30 PM

Raj…though the Face Value (nominal value) is Rs.15, the open market is valuing the company at Rs.10.

That apart when a company wants to delist its shares, the shareholders will benefit because by regulation the company is supposed to buy back shares at a significant premium. Have a look at this – http://www.sebi.gov.in/cms/sebi_data/attachdocs/1293085858352.pdf

Because of this clause, lot of companies find it easier (financially) to stay listed than de-listing their shares. Classic examples – Honeywell Automation, Coagra etc.

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