Why ordinary investors bleed the most when firms like DHFL, Jet Airways go bankrupt
Your concerns about Ruchi Soya are valid. A limited sample of cases was analysed as the resolution universe is big and many could not be included for the sake of brevity. Ruchi Soya set an example. It's stock rose ~ 100 times post re-listing after Patanjali Group acquired the company mainly due to low free float (0.97%). Erstwhile investors made a profit even as 99% of the equity was written off. But then SEBI came up with revised regulations saying bankrupt companies post-IBC must have 5% public shareholding in the restructured company if it wants to remain listed. Regards
