Reliance Capital, JP, Unitech… had been as soon as the delight of the index, at present nobody is asking their worth

New Delhi: Reliance Capital, Unitech, Suzlon, Reliance Communications… the record is lengthy. There’s one factor frequent with these firms. As soon as it was once the delight of Nifty50 index. Individuals used to overlook by investing in these shares. Individuals used to suppose that even when doom comes, nothing goes to occur to those shares. However, that is the inventory market. All such firms included within the Nifty 50, which as soon as spoke loudly, there got here a time when their standing was not left for a lump. Many of those are now not even traded. The latest instance of that is Reliance Capital of Anil Ambani Group. Just lately the shares of this firm had been delisted from the trade. On this approach, it may be stated that the worth of its shares has change into zero. Nifty is an index of fifty prime firms of the nation. This index consists of these firms for which it’s believed that they can’t face any form of downside. However, within the final one-and-a-half decade, this phantasm of the buyers has been damaged.

shattered the belief of buyers
In the previous few years, many huge shares have upset buyers. Not solely upset, even broke belief. They’ve come down on the ground. Many of those even went bankrupt. In some, buying and selling was halted as a result of the worth of their shares had change into unaffordable. These firms embrace Unitech, Suzlon, Vodafone Concept, Reliance Capital, Reliance Communications, Reliance Energy, MTNL, Jaypee Associates, Sure Financial institution. These are the shares that had been as soon as the delight of Nifty 50 index. At present the scenario is that nobody is even going to ask their emotions.

The story of all these happening can also be very related. In most of those instances, the debt burden on firms grew to become so excessive that they might not recuperate. To repay the debt, he took extra loans and this cycle of debt stored on trapping him. A day got here when firms raised their arms. Attributable to this, they had been both acquired by another firm or they settled down in enterprise. If anybody suffered essentially the most on this total train, it was the retail buyers.

Retail buyers had been hit essentially the most
Take the instance of Anil Ambani Group’s Reliance Capital. The general public shareholding on this firm was greater than 94 per cent. Just lately, after the worth of the corporate’s shares went right down to zero, buyers had been utterly shocked. Reliance Capital was in debt for a very long time. The decision technique of the corporate was reviewed by a committee of collectors on Wednesday. The bidding course of for the corporate ended on August 29. IndusInd Financial institution, US-based asset administration firm Oaktree Capital and 6 firms of Torrent Group have bid for the acquisition of Reliance Capital. Buying and selling within the shares of the corporate has been stopped. All shares have been debited from Demat.

That is the rationale why specialists advise buyers to undergo the stability sheet earlier than investing in a inventory. Regardless of how massive the corporate is, its debt could be inside a variety. If the debt exceeds the property of the corporate, then alarm bells begin ringing on it. There are various different indicators which inform concerning the monetary situation of the corporate.

Dagabaaz re….

firm Share Worth (in Rs.)
Unitech 2.40
Jet Airways 100.95
Suzlon 9.65
Vodafone Concept 9.65
Reliance Energy 19.20
MTNL 24.65
JP Associates 9.10
Reliance Communications buying and selling off
Reliance Capital buying and selling off
Sure Financial institution 17.50


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