What happens when stock gets delisted from stock market?

Today, we will see what exactly happens when a stock is delisted from stock market? What happens to the shareholders and how they get the money back for their shares?

To understand de-listing, first let’s understand meaning of “Listing”

So when a private company wants to be become a public limited company and offer its share to open public for buying and selling, then it has to get it registered with stock market and make its shares open to public and that is called as “listing”. Once a stock lists on the stock market, it then has to follow up various processes and comply with many rules and regulations.

De-Listing of Companies from Stock Exchange

Meaning of Delisting

When a company wants to de-register its stocks from stock exchange and no longer wants to let public buy and sell its shares, then it’s called delisting process. In most of the cases, the stock holders will get back the value of their shares on the price which is determined at the time of delisting.

There are two kind of delisting

Voluntary delisting

Voluntary delisting, as the name suggests happens when the company takes the decision of delisting themselves. It happens mainly because company does not see any benefit in keeping its shares on stock exchange and wants more control. In this case, the buyback price offered to the shareholders is more price than the prevailing stock price. Common reasons behind voluntary delisting are

  • Merger with another company
  • Looking for more control and simplification within company

Involuntary delisting

  • Involuntary delisting happens not out of choice, but when the situation forces for the delisting. When this happens, mostly the shareholders don’t get the good price, because anyways the stock prices must be at lowest levels. Some of the common reasons for involuntary delisting are
  • Violations of Regulations
  • Failure to meet the minimum financial expectations
  • Company is bankrupt or ceases its 0perations
  • No longer meets the listing requirement on stock exchange

How the investor gets their money back once the de-listing happens?

In case of Voluntary delisting

Understand that if its voluntary delisting, then it’s happening because the company wants it to happen. In this case, there is enough time for shareholders to get back their money and it’s mostly the transaction between the promoter and shareholders. In this case, you can expect to sell your shares back to promoters at premium price.

There is around 1 yr. of time for shareholders to get back their money and it happens through a process called as “Reverse book building” process

In case of Involuntary delisting

When involuntary delisting happens, it’s a case of violation of norms/regulations most of the times and it sends a negative shock among stock holders. Most of the times, the stock is already quoting at a lower price. In this case, whatever price is offered by company, it’s suggested to take it and close the matter.

In any kind of listing, it’s not suggested to wait for future listing of the company because you have no idea when it will happen again. It might never happen. Also it gets very tough to find a buyer off the market and get a good deal.

Recent delisting case of Vedanta Ltd

Let’s talk a bit about the recent case of Vedanta Ltd delisting news. Recently, Vedanta Ltd has decided to delist from stock exchanges because of “Corporate simplification”. They feel it will enhance operational and financial flexibility in a capital intensive business.

It was a case of Voluntary Delisting, and hence there is enough time for delisting process and shareholders don’t have to panic at all. The company has decided to buy out the minority and non-promoters shares back from public. They have proposed an “indicative offer price” of Rs 87.5 a share which is around 10% more than the closing market price last of 79.6.

Now the next set of process will follow, but you don’t need to get into details. The point is that the delisting will happen and shareholders will get a good exit.

Here is a small list of few companies which got delisted in the last 10 year from BSE

  1. Maharaja Shree Umaid Mills Ltd on Feb 2, 2015
  2. Shantivijay Jewels Ltd on Jan 20, 2015
  3. Novopan Industries Ltd on Nov 10, 2014
  4. Vishnu Sugar Mills Ltd on Jun 30, 2014
  5. English Indian Clay Ltd on Jun 4, 2014
  6. Rhodia Speciality Chemical India Ltd on May 28, 2014
  7. Reliance Media Works Ltd on May 6, 2014
  8. Reliance Broadcast Network Ltd on March 28, 2014
  9. Gujarat Organics Ltd on Jan 9, 2014
  10. Chettinad Cement Corporation Ltd on July 8, 2013

Hope you all have understood the various aspect of delisting of a company from the stock exchange. If you all have any questions, you can put across in the comment section and I will get back to you on your queries asap.

Why that IDIOT is RICH and I am not ?

I got a call from one of my friends. He was feeling down in life and wanted some help on how to deal with the current negative scenario, he asked me some questions and requested for some coaching, he started with questions like

  • How can I make more money?
  • How can I have a blog like yours?
  • How can I build a successful business?
  • How can I increase the flow of money?
  • How can I increase my income and get more clients?
  • How can I have things which others already have?

In his words I could see, he was comparing himself with others and so I asked him to prepare his IDIOT LIST. I told him that even I was the same a few years back and how I connected with my flow of money.

Rich vs Poor Jealousy

I asked him to sit with a blank sheet of paper with a question written on the top – “Why that idiot is rich and I am not?”

He started writing about people who had more money, more resources, more clients, more cars, bigger bank balance, and more stuff than he was having (even my name and Manish’s name was in his list).

After he was done, I asked him to empty his mind. I asked him who he would be without his idiot list? (He minus his idiot list)

He said, he will have freedom.

An Empty mind will lead to wealth creation

I asked him to GIFT that very same freedom to himself, because only an empty mind, a free mind can lead to wealth creation, only an empty mind can get him peace with himself.

You can’t create things if you are having a war in your mind. I told him, first your mind has to get free if you want your mind to serve you. The process is simple, write your thoughts on paper, and question your thoughts till you experience freedom.

More money, more business, more income, and more clients were not his real business, his thinking was his real business and I asked him to focus only on his true business – “his thinking”.

I kept asking him to work on his thinking, to hold a clear mind, once the mind is clear all the good things will happen on its own. I asked him to get rid of his idiot list. We see the world, compare ourselves with others and that is where the problem starts if there was nothing to compare there would be no rich or no poor person on this planet.

Every single person who you meet on the street wants to make money, in fact, a lot of money. I think it is your right to be RICH but then why do people struggle in the area of money.

“Making money” is a myth

Consider that in reality there is no “making money” in life because the money is already out there. All the Money is out there and now you simply need to fill in your little bucket between the age of 25 to 52. (The range can be different for you)

Let me share some elements we covered in our coaching conversation, maybe the elements can help you to fill in your MONEY buckets.
Consider that money has a flow to it. It has a rhythm to it and no matter how hard you try to hold on, it will find its way and continue to flow.

If you are experiencing any kind of struggle in the area of money it means you have disturbed the flow of money in some way.

People think our job is to spread financial awareness, write articles, make financial plans, and coaching people. No, our core job is to help people to connect with their flow of money.

Here is something you can do to connect with your flow of money

1. Stop trying to have money and just be like Money

Really stop trying to make money and start to be like money. The money will flow from you to me and from me to you, it passes through the phone, it passes through the plastic cards, it passes through wires and it crosses countries, moves from one company to another. It sees no limitation it simply flows.

Everything around you right now someone has seen the opportunity and filled his or her bucket with the money earned. The more you get in touch with the flow of money the faster you move towards wealth.

When you are like money you will find that Opportunity is always knocking and you just need to open the door. The computer on which you are reading this article someone saw the flow of money in it, the software, the internet provider, the chair you are sitting on, the phone that you own, the food that you had today.

There are so many businesses to be started, so many services to be offered. If you can see money in everything you will see opportunity in everything. Wow, this is what happens when you start to be like money. You will feel the flow right now at this moment. Take some time and make some notes if some new thoughts came to you. The flow is touching base with you and I request you to respect it.

On hearing the above words my friend said, ” Oh my god, there are so many opportunities, so many things he can do to create wealth and he needs to get rid of his idiot list. I just need to be like money, I don’t need to have money”

2. Love, Serve and Create

You have already learned from Manish about term plans, investment ideas, how to save tax, etc. He is not good but great at what he does. One more thing you can learn from Manish apart from personal finance is these three words Love, serve, and create.

He has dedicated his life to creating Jago effect in people’s life be it personal finance or any other area. He simply loves to serve that’s all.

Earlier we use to work for 7 days a week and we use to hate holidays and Sundays as they take us away from our love, our work. Manish has replied to hundreds of people whom he does not even know and he will never ever meet most of them in his lifetime.

This is being of service to people from morning to night. Being of service should be your 24×7 job. It should be your full-time job or I would say the only job you have.

If who you are is good enough, give yourself to the world; give your talent to the world. Here is how the two world’s are different.

[su_table responsive=”yes”][su_table responsive=”yes” alternate=”no”]

Operating from the Space of comparison/Jealousy Operating from the Space of love, service, and create
Focus is on what others are having Focus is on having a clear mind
Focus on needs Focus on putting the right seeds
Lack of freedom Freedom to live and work
The mind is loaded with a thousand thoughts The bandwidth of mind is free to think
lack of creative ideas free flow of creative ideas
stressful life stress-free life


If your product is good, give someone an experience of it.

  • Look at who can you help today?
  • Who can you serve today?
  • Who needs your help?
  • Who is waiting for your service or product?

Don’t be tight-fisted, just keep giving because of the flow of money fastens when you give.

This is when you start creating wealth and building wealth in life.

3. Break the Attachment

Your strong attachment to money actually keeps you away from it. You should not hold on to money, you must keep it in the flow, use it wisely, spend it freely, give and share it lovingly.

Continue to invest in yourself. It can be a book a program or some new skill-building. The day you stop investing in yourself you start blocking your flow of money.

Is it the amount or the feeling of giving the amount that holds you back?

This is one of the biggest mistakes you make as an investor as you are stopping the flow of money in your life when you are in grip of attachment. Invest in anything and everything that helps you grow in life.

Like my friend, 10 years back even I use to think “Why that idiot is RICH and I am not?”

Break your attachment with money

I was so wrong I was just not focusing on my life’s flow of money. Some realizations in life and my coaches connected me to my own flow of money. And I helped my friend to connect with his flow of money and I am sure the article will help you to connect with your own flow of money.

Do share your views on what actions you are going to take to connect fully with your flow of money. What learning’s have you taken from this coaching conversation? Do feel free to write and express yourself fully in the comments section.

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It is a very simple and a powerful program; we invite you to explore the program if you think financial planning exercise can take your financial life to the next level then see that you join the program at the earliest