Delisting can be a double edged sword. If it goes through, the investors will make decent money. The problem is that if it doesn’t go through then the share price falls substantially below the indicated price, which in this case is 338. More often than not, in recent times, delisting has failed as Companies have failed to garner 90% of the share capital required to delist. That said, if it does go through, that is if the Co. can manage to reach the magical figure required, I feel the mgt will leave no stone unturned to make it happen and should be happy to pay an exit price in the vicinity of 440 to 500.
I fear Shreyas Shipping will be no different, in that getting the required number could be a challenge given that there are number of big investors who feel short changed at the prospect of delisting, will not lodge their shares & are happy to play the waiting game. Personally, I feel one should exit atleast about 50% of one’s holdings at the current market price n lodge the balance for delisting, knowing fully well that there is a 50% chance of delisting not going through.
On second thoughts, it might not be such a bad idea to exit fully now!!
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