Loading
Market Intelligence › Blogs And Updates
What delisting is, voluntary vs involuntary delisting, and what investors should do — a complete guide.
Published by The Retail Trader · AUG 04, 2026 · Features
What delisting is, voluntary vs involuntary delisting, and what investors should do — a complete guide.
Delisting = a company being removed from the stock exchange. The stock will no longer trade on the exchange.
The company itself wants to leave the stock exchange.
Keep these two points in mind:
• Reasons: Promoter wants full control, merger/acquisition, cost cutting
• Process: Board approval → Shareholder vote → Reverse book building → Exit offer
SEBI/the Exchange forcibly removes the company.
Keep these two points in mind:
• Reasons: Non-compliance, fraud, failure to meet minimum public shareholding
• SEBI rules: Companies must maintain 25% public shareholding
In voluntary delisting there is an RBB process:
• The company announces a floor price
• Shareholders bid (at the floor price or above)
• The buyback happens at the highest bid price
• At least 90% of shareholders must agree
Delisting Announced:
• Hold — The price usually rises after delisting
• Bid in the RBB — Bid at the maximum price
• Wait for the exit offer — The promoter must buy at the discovered price
Delisting Already Happened:
• OTC market — An off-market deal is possible
• Contact the company — A direct sale is possible
• Wait — Sometimes relisting happens
Keep these three points in mind:
• Vedanta — Year: 2023 (attempted), Reason: Promoter wanted full control, Price: Failed
• Hexaware — Year: 2020, Reason: KKR acquisition, Price: ₹475/share
• Majesco — Year: 2021, Reason: Sale of business, Price: ₹843/share
Keep these points in mind:
• 📌 DELISTING
• 📊 Removal from the stock exchange
• TYPES:
• 📊 Voluntary — The company itself wants to leave
• 📊 Involuntary — SEBI forcibly removes it
• PROCESS (VOLUNTARY):
• 📊 Board → Shareholder vote → RBB → Exit offer
• RBB (REVERSE BOOK BUILDING):
• 📊 Floor price → Shareholders bid → Buyback at the highest price
• INVESTOR ACTION:
• ✅ Hold (the price rises)
• ✅ Bid the maximum in the RBB
• ✅ Wait for the exit offer
• ❌ Don't panic sell
• SEBI RULES:
• 📊 Min 25% public shareholding mandatory
• 📊 Exit offer is required in voluntary delisting
Keep these points in mind:
• SEBI Guide | What Is the Share Market? | Stock Split Bonus Buyback
The Retail Trader — educational market analysis. Not investment advice.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory in any way. Rules, rates and mechanics change from time to time at the exchanges, SEBI and the RBI, so verify every number yourself with your broker or an official source.