Moneycontrol News
Shares of companies referred to National Company Law Tribunal (NCLT) for bankruptcy proceedings are now a favourite among punters, as per a report in Business Standard.
Last year in June, the Reserve Bank of India has identified 12 companies and come out with a second list comprising 28 accounts worth over Rs 1.5 lakh crore for resolutions under the Insolvency and Bankruptcy Code (IBC).
The report said these firms’ shares have risen from 40 percent to 100 percent in the last three months, despite them incurring huge losses and defaulting on their loan repayments.
High net worth individuals are showing a lot of interest in trading the shares of stressed companies on anticipation that these firms have some intrinsic value left in them and many of them are trading below book value.
Some verticals of firms such as Lanco Infratech and Videocon are doing well, giving a return of 100 percent and 65 percent respectively in the last three months. The scrip of infrastructure major Jaypee Infratech is up 70 percent although it is struggling to deliver flats to homebuyers in Noida.
However, analysts have cautioned investors saying that dabbling in these stocks is very risky.
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