Vedanta, United Spirits: Why are firms opting to delist in the current mkt?

If the trading volumes shrink and the market is failing to reflect the true value of the counter in the price, the listed entity may find it to be very difficult to raise equity capital, analysts say.

Delisting seems to be the flavour of the season. After Vedanta, reports suggest that United Spirits and Adani Power may delist from the exchanges. On May 18, the board of Vedanta approved delisting of the shares at a floor price of Rs 87.25 per share. However, the final offer price for the delisting proposal will be determined in accordance with the reverse book building mechanism set out in the delisting regulations, it said.

UK-based Diageo and home-grown Adani Group, according to reports, have also initiated talks with investment bankers and consultants to initiate delisting from bourses. In case of United