FM's announcement to increase public shareholding to 35%

[vikas1989]

Hi @nithin

Would like to know your thoughts on FM’s announcement to increase public shareholding from 25 per cent to 35 per cent, specifically impact on day to day market liquidity

[nithin]

@vikas1989

Would like to know your thoughts on FM’s announcement to increase public shareholding from 25 per cent to 35 per cent, specifically impact on day to day market liquidity

I don’t think it is announcement yet. FM has asked SEBI to see if it can push it to 35%. I don’t know if there is enough appetite for so much more equity currently. I read an estimate of over Rs 3.5lk crores capital that would be required to take this 25 to 35, I don’t think there is that much liquidity in the ecosystem.

For the exchanges and capital markets in general, more public shareholding and hence liquidity is generally good.

[sabkaview]

@vikas1989 This is just a request to sebi to mull the feasibility of making maximum promoter hold to 65% from present 75% . it is not a budget proposal .
Many promoters may go for d listing attempt rather than stake dilution if this is implemented .

Taking Company Private

If a Publicly listed company wants to go private. Can they force the shareholders to sell their Shares ? Consider I have 100 Shares of Company A, The Company decides to go private after shareholders approval and buys back shares at premium. But I do not want to sell. Is this possible ? or by default all outstanding Shares will be bought back ?

[ipranavgaurav]

If it will happen then retail investor have 10% more to loose