India Globalization's Relisting May Not Be A Stamp Of Approval

On February 21, India Globalization, Inc. (NYSEMKT:IGC) announced that it had succeeded in challenging the New York Stock Exchange's previous decision to delist its common shares from the exchange. With the decision overturned and India Globalization's common shares relisted, the shares rallied 400% to $1.91 on trading volume of 16M shares, up from a mere 65k shares traded in the previous day. Investors may feel that the re-listing on the NYSE invalidates the NYSE's original grounds for the delisting, may feel the listing on the NYSE carries a large premium over trading on the OTCBB or may even see the re-listing as an endorsement by the NYSE, but whatever the reason, IGC now trades at a price which is multiples higher than the price at which the common stock traded on the OTCBB when delisted.

The NYSE had previously made the decision to delist India Globalization's common shares on October 29th, citing that since India Globalization, "substantially discontinued the business that it conducted at the time it was listed or admitted to trading, and has become engaged in ventures or promotions which have not developed to a commercial stage or the success of which is problematical, it shall not be considered an operating company for the purposes of continued trading and listing on the Exchange."

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