What exactly happened to ESL(ELECTROSTEEL STEELS LTD) stock


#1

On 11/06/2018 it was trading 1.45 and now trading with 13 rs. Also number shares got reduced.


#2

This is were SEBI fools people en-mass. there is no clarity from sebi that an ordinary investor can understand. It is all in complex legal terms. I believe people who had 1000 shares of esl earlier are now reduced to 20 (1000/50) and now it is worth 13.5 (current price on bse) * 20 ( new number of shares).


#3

Basically you got a 75% haircut on equity.


#4

holding reduced in the ratio of 1 existing listed and trade share in swap of 50 old share thus 1000 share become 20.
moot question is : why this share is trading at 67 when it is clear that it will be compulsorily delisted at some 9.57 per share .
the only thing which come to my mind is that it may not be snatching of shares but shareholders will have option to keep unlisted share . a very dangerous move if investors are buying with this belief that after few years the unlisted ESL will be merged with unlisted Vedanta star (who bought ESL) and Vedanta star will give open offer or list .


#5

In fact Vedanta group is in process to d list many of its listed companies be it Cairns ,Sterlite industries from India and Vedanta resources from London. In fact after d-merger of listed sterlite technologies it kept Sterlite power unlisted thus now only 3 companies of group are listed .Sterlite technologies ,Hindustan zinc and Vedanta .SO it is highly unlikely that Vedanta start the buyer of ESL will ever seek listing.


#6

Rarest of rare case for a scrip which is listed at both the exchanges to trade with big UC on one exchange and big LC on another exchange. …


#7

@abbanerjee ; what made the share travel to rs 70 .90 through continues 5% UC and now in continues LC’S.


#8

Can check this, seems this is due to miscommunication or no cummunication between two exchanges.


#9

@abbanerjee : Frankly speaking i do not understand why it trade at 50 when there is a compulsorily d listing by paying 9.54 per share ? is it because investors might have option to hold unlisted shares ( still not sure ) of ESL a Vedanta group company ?
Vedanta group similar to Essar group is delisting many of it’s companies be it cairns ,sterlite ,vedanta resourses ,sterlite power etc.so to expect it will list a new company is a very dangerous investment.


#10

@siva :wrong price discovery took place @ bse (listed only @ bse)in Swadeshi industries very recently on 16 August when it re-listed as face value 10 from earlier face value 1 but BSE was quick enough to adjust the trades from August 17 .i do not know why NSE is not doing so since a long time in ESL case.


#11

the share will last trade on December 12 of 2018 before being d listed . those holding will get an exit offer form through which they have to apply in delisting a fixed price d listing at 9.57 per share in an off line mode.