Holding firms, or holdcos, should not have operations of their very own however maintain stakes in different property together with shares of different listed firms. These corporations principally maintain investments in their very own group firms. There are practically 70 listed holdcos within the Indian market. These sometimes commerce at the next low cost than the intrinsic worth of their holdings. Sebi’s new framework tries to handle this hole.

For eligible holdcos, inventory exchanges will provoke the particular name public sale with a 14-day advance discover. The discover can have particulars of the general guide worth of the corporate, guide worth primarily based on investments in listed firms and the newest buy-back worth. The particular name public sale shall be supplied solely every year for every holdco. The primary such session shall be performed in October.

The session shall be thought-about profitable if the value discovery relies on orders from no less than 5 distinctive consumers and sellers. If it’s not profitable, then will probably be prolonged for one more day till the value discovery. The market regulator has additionally specified standards for such holdcos which shall be eligible for the particular session.

First Printed: Jun 20 2024 | 8:34 PM IST