Trading in Sintex Industries shares suspended; investors likely to lose their capital (2024)

FAQs

Trading in Sintex Industries shares suspended; investors likely to lose their capital? ›

NEW DELHI: Domestic bourses BSE and NSE suspended trading in shares of Sintex Industries from Tuesday onwards. This comes after brokers had highlighted that traders were buying shares of the company despite the prospect of losing their entire capital. Thus, no trades happened on Tuesday.

Sintex will get delisted. If you continue to own the stock, your capital might be reduced to zero. You can sell your shares of Sintex Industries before the delisting date approaches. If you do that, you would have already liquidated your holdings before Sintex Industries delisting.

The entire share capital of Sintex Industries Limited will be written off as part of the Insolvency resolution process. You will not be able to sell your holdings in the stock once it is delisted.

Sintex industries saw investor wealth being lost as it focused on its textile segment, making yarn and fabric. As the cost of cotton rose two times, the company saw pressure on its profits. With slowing sales and higher prices, the company had no option but to resort to debt.

Is Sintex Industries Ltd a good quality company? Past 10 year's financial track record analysis by Moneyworks4me indicates that Sintex Industries Ltd is a below average quality company.

Trading in Sintex Industries shares suspended; investors likely to lose their capital. The assets of the company are being acquired by Reliance Industries jointly with Assets Care & Reconstruction Enterprise Limited.

Delisting of a company means that the company is removed (voluntary/involuntary) from the stock exchange of India. Investors holding shares of these companies can no longer trade on the stock exchange. In order to sell the shares, the shareholder has to sell them on the over-the-counter market.

“In the above circ*mstances and to avoid market complications, trading in the securities of Sintex Industries Limited will be suspended with effect from March 22, 2022.”

Delisting of equity shares of SINTEX

As per recent circulars of BSE & NSE, the following security will be delisted w.e.f. March 10, 2023.

The SINTEX stock price can go up from 7.820 INR to 10.145 INR in one year.

Who is buying Sintex Industries shares? ›

Mukesh Ambani-helmed Reliance Industries (RIL) has completed the acquisition of Sintex Industries (SIL) and has infused ₹1,500 crore into yarns and fabric maker under the resolution plan.

As it turned into a multibagger stock, Sintex Industries became a household name in the investing community.

Conversation. If you own SINTEX, kindly note: Share is likely to go to zero. Both resolution plans say they will write down equity to zero.

Greiner is a supplier of plastics and foam solutions. SaarGummi is a company that provides seals and other products from rubber and plastic. FCC is a company that manufactures elastomers and adhesives. PUM is a manufacturer and trader of plastic products and solutions.

Sintex Industries Ltd. has split the face value 2 times since Oct. 10, 2005.

Promoter or acquirer will buy back the shares through a reverse book building process. Promoters are required to make a public announcement of buyback by sending out a letter of offer to eligible shareholders and a bidding form.

If you still hold shares after they are delisted, you can sell them—just not on the exchange on which they traded before. Stock exchanges are very advantageous for buying and selling shares. When they delist and trade over the counter (OTC), selling shares and getting a reasonable price for them becomes much harder.

When a company delists, investors still own their shares. However, they'll no longer be able to sell them on the exchange. Instead, they'll have to do so over the ounter (OTC).

Delisted companies often lose their reputation and gain a stigma for being unable to meet the requirements of the major exchanges. When a company delists voluntarily, stockholders will receive a cash buyout or shares in the new, acquiring company.

A trading suspension occurs when the SEC stops trading in a stock to protect investors. That means you can't buy or sell shares in a company whose stock faces trading suspension.

What happens to investors money when a company is delisted? ›

A delisting does not directly affect shareholders' rights or claims on the delisted company. It will, however, often depress the share price and make holdings harder to sell, even as thousands of securities trade over-the-counter.

The liquidation value is estimated by the RP to be Rs 1,208 crore. The insolvency application against Sintex-BAPL Limited was filed by operational creditor Zielen Industries for defaulting on a payment of Rs 40.68 lakh.

The National Company Law Tribunal (NCLT) bench of Ahmedabad on Friday approved a resolution plan submitted by Welspun Group for the turnaround of KKR-backed popular plastics products maker Sintex BAPL, paving the way for Welspun to take over the troubled company.

After the consummation of the demerger the existing investors of Sintex Industries will be issued shares of the plastic business in the ratio of 1:1, which effectively means for every 100 shares held in the original company, investors will be entitled to another 100 shares of the plastic business.

Once a stock gets suspended from trading, you will not able to trade those shares on the secondary market. In most cases, such investments will render useless and you will most likely have to write it off as a loss.

The SINTEX stocks price on bse is Rs. 2.21 today.

Reliance Industries, in partnership with Assets Care & Reconstruction Enterprise (ACRE), emerged as the highest bidder in the second round of bidding for bankrupt Sintex Industries Ltd offering ₹3,405 crore, while Himatsingka Ventures' ₹3,297 crore offer was second-highest, said people aware of the matter.

Reliance Industries has completed the Rs 3,567-crore acquisition of India's Sintex Industries, which had been agreed a year ago and approved by the National Company Law Tribunal (NCLT) in February.

What Is Sintex Industries's Net Debt? As you can see below, Sintex Industries had ₹67.4b of debt, at September 2022, which is about the same as the year before. You can click the chart for greater detail. On the flip side, it has ₹2.10b in cash leading to net debt of about ₹65.3b.

Who is the new owner of Sintex Industries? ›

RIL now holds 70 percent stake of Sintex Industries, which will be jointly controlled and managed by RIL and ACRE. The turnover of SIL for FY2022, FY 2021, FY 2020 was ₹3,127 crore, ₹1,689 crore and ₹1,635 crore, respectively.

While a stock split doesn't change the value of your investment, it's generally a good sign for investors. In most cases it means that the company is confident about its position going forward, and that it wants to seek additional investment.

Splits are often a bullish sign since valuations get so high that the stock may be out of reach for smaller investors trying to stay diversified. Investors who own a stock that splits may not make a lot of money immediately, but they shouldn't sell the stock since the split is likely a positive sign.

Sintex Industries SINTEX share price forecast & targets for long-term is an uptrend, and nearest possible share price targets are 8, 9, 11, or even 11.45.

Senior counsel Nikhil Pahwa, representing the RP, informed the bench that the liquidation value of Sintex Industries is Rs3,632.81 crore.

The National Company Law Tribunal (NCLT) has approved the joint bid of Reliance Industries and Assets Care & Reconstruction Enterprise (ACRE) for debt-ridden textiles maker Sintex Industries.