Retail investors hold around Rs 1,000 crore in bankrupt listed companies

Each bankrupt company has around 7,500 retail investors on a median basis

Retail investors, hoping for a turnaround in listed companies mired in bankruptcy proceedings, hold significant stakes in these entities, reveals a Business Standard analysis. A study of 115 companies undergoing proceedings under the Insolvency and Bankruptcy Code (IBC) shows that retail investors hold stakes in a majority of them.

There are nearly 7,500 individual shareholders per company on a median basis, holding a nominal share capital of up to Rs 1 lakh for the full sample. They hold a median stake of 15.8 per cent. The analysis, based on data as on January 21, 2021, shows that the sum