InvestorQ : what will happen to share price of JayPee infratech, when the insolvency proceedings are completed. Is there any chance of its share price going up?
Rohit Kashyap made post

what will happen to share price of JayPee infratech, when the insolvency proceedings are completed. Is there any chance of its share price going up?

Answer
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ishika Banerjee answered.
1 year ago


Since the share price of any stock cannot technically go to zero, this stock will continue to quote at around Rs.1 or Rs.2 but that hardly means anything. Jaypee is already involved in major litigation over incomplete projects. Even if the NCLT goes through successfully, the bondholders are going to take a haircut. That means virtually nothing will be left for the equity shareholders.
You will find the same impact on the share price as you saw in the case of Kingfisher and others like IL&FS that went bankrupt. It will continue to quote below Rs.1 before it is finally delisted.