What will happen in 3i Infotech after the market closes tomorrow? Why the company is getting delisted? What is the company’s plan regarding relisting? Learn everything in detail here from Research Analyst Devanshi Asher. 

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The stock of 3i Infotech is taking an interesting turn! In the last 3 days, if you have noticed then, the upper circuit of this stock is showing a freezing sign. After 30th August 2021, which means after 27th August market closing, this stock will get delisted. However, this delisting is temporary. After some time, this stock will be relisted again.  

But this relisting date the company has not yet announced. However, this is sure that it will be delisted on 30th August. So why the company is doing this overall restructuring after the delisting? She said: “In this scheme of the arrangement, the face value of the shares currently is at Rs 10 per shares. This will be reduced to Re 1 per share, which means the company is planning for a capital reduction, which is 90 per cent.”  

She added that the current face value of Rs 10 per share will be reduced to Re 1 per share and after that the total shares will be consolidated and for every 10 shares, 1 share will be allocated in comparison and the face value of these shares will be Rs 10.  “Now, this means if you have 100 shares then you will get 10 shares at a rate of Rs 10, in short, there will be a capital deduction of Rs 90,” Asher mentioned.  

Asher said all investors are bullish on this because the company has given big statements. It has been said that till 2030, 3i Infotech has set a target to earn $1 billion income. And at the same time, it was also planning to be a debt-free company. It is gearing to become a one-stop tech solution company and also mulling to bring in 5G network. 

She further added that recently 3i Infotech sold one of its subsidiaries and has become a debt-free company now.  So now investors are speculating that whenever it will be relisted then the shares will have more values, will witness big jumps and it will be compared with Ruchi Soya.  

Asher said that there are quite red flags, with huge risks. First, the CFO has recently resigned, and 16th September will be his last date. Also, there is a 90 per cent reduction in the capital. And also understand the shareholding pattern here. The promoters have zero per cent holding and the public holding is 100 per cent. “So, there is a huge risk and this is a bull versus bear situation, she reaffirms.”

Managing Editor and Market Guru Anil Singhvi questions will it behave like Ruchi Soya? Are any new promoters coming? Because in the Ruchi Soya case, Patanjali entered. So when the promoter changed then the destiny of the company also changed! The same happened in the Alok Industries case. When Reliance became the promoter, things changed there also. So any such thing happening in 3i Infotech?

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Asher replied that the company approached the NCLT, it wanted to revive and this is the reason why it wanted to restructure. But promotors are not changing. 

The Market Guru replies this will happen after rearrangement, if a person has 100 shares, then he will be left with 10 shares with a face value of Rs 10. Over 90 per cent equity will be gone. The current value of the stock is Rs 8.05, if the value will become Rs 80, after relisting, then you will reach breakeven. So, invest in this stock cautiously!