I read that NSE is delisting the following companies w.e.f from May 12, I wanted to know what happens to the shares of these companies and the impact on shareholders.
Deccan Chronicle
Coral Hub
Evinix Accessories (currently known as Evinix Industries)
Nothing. You need to find a buyer in private markets. There are some operators who buy this from the retail investors usually at very high discounts to last traded value. Basically, for a retail investor - you are screwed unless it relists again.
A company con delist for 2 reasons - Forced or voluntarily.
Forced delist - This is when the exchanges decides to delist the company, usually for non compliance. If you are holding shares of such companies, then you will have to write it off as bad investment.
Voluntarily delist - This is when the company itself decides to delist the shares from the exchange. This could be an outcome of corporate restructuring exercise. Under such a situation, the company has to offer a premium over and above the current market price of the shares. Usually, the premium shoots up to 30-40% or more.
Either ways, when delists, the shares are relinquished and loses all its economic value.