Trading in shares of Sintex Industries has been suspended ahead of the delisting. The suspension came in following statements from brokers, highlighting that traders were still buying shares of the company despite the announcement of share capital to turn zero and the company getting delisted soon.
“In the above circumstances and to avoid market complications trading in the securities of Sintex Industries, will be suspended w.e.f. March 22, 2022,” BSE said in a circular.
On Monday, Nithin Kamath, founder of discount brokerage firm Zerodha, said that traders on their platform were seen adding shares of Sintex Industries even after the company on March 20 had stated that its share capital will turn to zero and it will delist soon.
“It is concerning that we have a few customers still buying Sintex shares even after this nudge that the stock price will go to 0 and mandating a TOTP. There are so many who decide to buy just because a stock is at 52-week or all-time lows without caring about the reason,” said Kamath.
Shares of Sintex Industries will be delisted from the exchanges following the approval of the insolvency resolution plan by the members of the committee of creditors (CoC). Reliance Industries-ACRE had won the bid to acquire the debt-ridden textile company on March 20.
“As per Resolution Plan of Reliance Industries jointly with Assets Care & Reconstruction Enterprise it is proposed that existing share capital of the Company shall be reduced to zero and the company will be delisted from the stock exchanges i.e. BSE and NSE,” said Sintex Industries in an exchange filing.
