News Update

Shareholders Of Two Companies Of Videocon Receive “Zero” Money On Delisting

• ByStartupStory     |    June 19, 2021

Debt-ridden company Videocon has probably hit its lowest, as two of their sub group companies are failing to offer their shareholders any money. As the liquidation values of the two firms are not sufficient to cover their already outstanding debt, thus shareholders of two companies of Videocon receive “zero” money. These two companies – Videocon Industries Ltd and Value Industries Ltd will be delisted, as approved by the Videocon group. 

Shareholders of two companies of Videocon receive “zero” money, and also “zero” offers, when the delisting was announced, as said by the firms in a public notice. The regulations of Sebi clearly state that when a company is delisted then, they are to offer something to their existing shareholders. Value Industries Ltd said,” Liquidation value of the equity shareholders is ‘nil’ and therefore they would not be entitled to receive any payment.”

It has also been stated by the two videocon companies that equity shareholders are not required to surrender their equity shares to successful resolution applicants. The resolution applicant shall also not play any consideration to the shareholders towards the delisting of the equity shares. 

All Videocon group companies to be merged into one – Videocon Industries Ltd except for Videocon telecom Ltd which has beben kept out of this. Videocon Industries and its 12 groups had a total admitted claims of rs. 64,838.63 crore. In, Videocon Industries Ltd, promoter and promoter group has 40.59 per cent share and Public shareholdings is 59.41 percent. 

 

 

 

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