Videocon Industries share was suspended from trading from 16th June, 2021, after NCLT order for revival of the company. As per shareholding pattern  available on exchanges (being latest one of 30th June, 2020), about 3.29 lakh retail shareholders were holding 14.65 cr shares, which are valued at Rs. 106 crore, with last closing rate on 15th June at Rs. 7.25 per share.  Even company results till FY19 were available on exchanges.

Many retail investors were desperate and mad to buy the stock, as it was hitting Upper Circuit from 7th June to 15th June, while NCLT awarded the ownership of the company to Vedanta Group, without realising that NIL value has been assigned to equity by NCLT. Now all shares are worthless piece of paper, having collectively caused a loss of over Rs. 100 crore to these small investors.   

Infact, huge number of queries were posted by our members, wanting to buy the stock, while they were advised to avoid buying it. This should be taken as a hard lesson by these small investors, that this can cause a loss of Rs. 100 crores, to them, who were saying that they won't mind loosing Rs. 5-6-7, as they were buying thousands and lakh number of shares and not 1 share.

This proves that Fundamental is the Key of Investing.  

This is not a sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.