Several companies that had successfully completed the National Company Law Tribunal (NCLT)-led corporate insolvency resolution process (CIRP) and opted for relisting in the stock exchanges are finding it difficult to secure fair price discovery due to alleged ‘unrealistic’ price bands set by the stock exchanges and hence seeing value distortion, according to impacted companies and analysts.
“Several companies which emerged from NCLT-led insolvency proceedings are facing challenges in securing the right valuations during relisting due to the imposition of unrealistic price bands,” said Martin Golla, a Mumbai-based lawyer, who specialises in insolvency and bankruptcy law.
“There are instances where companies have been stuck…