The company is going through the process of capital restructuring through a ‘scheme of arrangement’ with its shareholders approved by National Company Law Tribunal (NCLT).
According to the scheme, after the entire issue is subscribed, paidup equity share capital of the company shall be reduced by 90 per cent by changing the face value of the stock.
As part of a procedure to give effect to the scheme, trading suspension in the stock was announced with effect from the end of Friday, August 27 2021.
Kishor Ostwal, CMD, CNI Research, said delisting is a part of the capital restructuring process and there would be minimal loss to investors after it.
The plan of capital restructuring has been drawing the attention of Dalal Street, as investors have started comparing it with
and Alok Industries, stocks that delivered strong returns after relisting recently.
Ostwal, who is very bullish on the stock, said the capital reduction may be a game changer for the stock just the way fortunes of Subex changed.
“It has signed new deals and the management commentary is optimistic over revenue,” he said. “Also, the lesser interest liability and stronger balance sheet will add to the positivity.”
Other analysts said the stock is expected to be relisted on the bourses soon, maybe in 3 to 6 months, but nothing concrete can be said about it. Also, the relisting price is not known yet.
The company clarified that trading in shares of the company would resume after the completion of the necessary
corporate actions and necessary approvals from the stock exchanges.
“The company will give provide intimations regarding these events as mandated by the Sebi LODR. Investors should monitor the stock exchange websites for authentic information and not rely on rumours,” it said in a regulatory filing.
Shares of 3i Infotech were delisted at Rs 8.56 after the market hours on Friday. The market capitalisation of the company stood at Rs 1,383.86 crore.
Delhi-based Ashish Chugh of Hidden Gems said 3i’s comparison with the likes of Ruchi Soya, Alok Industries, DHFL or any other company is not fair.
“One must look at what the management plans to do in the future and future growth prospects of the company before taking any decision of investment, once the scrip starts trading again,” the value investor said.
