Minority shareholders may think they are getting a raw deal but that’s incorrect. Graphic: Vipul Sharma/MintInvestors searching for bargains in companies under the Insolvency and Bankruptcy Code (IBC) were rudely awakened by Electrosteel Steels Ltd’s resolution. That values the remaining 10% equity at Rs200 crore, less than a third of the company’s existing market capitalization of Rs653 crore. Under insolvency, all shareholders stand in the same dock, accused of owning a company that has defaulted on its debt. The Electrosteel case is unlikely to be an exception and retail investors are better off not hunting for bargains here.

Source: Mint April 20, 2018 03:45 UTC