"The total number of Offer Shares validly tendered by the Public Shareholders in the Delisting Offer is 1,25,47,16,610 Offer Shares, which is less than the minimum number of Offer Shares required to be accepted by the Acquirers in order for the Delisting Offer to be successful," the statement added. Inclusive of ADR shares, public shareholding in Vedanta Ltd is 185.3 crore shares which translates into 49.86% public shareholding. But, after the announcement the stock price rose past the given price. The exit price was to be determined by a reverse book building process. By clicking 'Accept' on this banner or by using this website, you consent to the use of cookies unless you have disabled them. If company receives more than 90% in reverse book building, it can force delisting of the company. This website uses information gathering tools such as cookies and other similar technologies. Delisting is the word for this phenomenon. No: INH000000248. Shares of the firm have galloped from Rs 98 per share in October, just after the delisting process failed to now trade at Rs 170, a 73% jump in a little over two months. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others. ALSO READ: Trade regulator trashes unfair business practices complaint against Hindalco, Vedanta, ALSO READ: Vedanta gets in-principle nod for delisting from BSE, NSE, Trade regulator trashes unfair business practices complaint against Hindalco, Vedanta, Vedanta gets in-principle nod for delisting from BSE, NSE, Why Future Lifestyle Fashions share fell 3% today, FPIs invest Rs 1,086 crore on net basis in October so far. The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. He said that there are only two reasons why a company wants to get delisted – one is that the company wants to be free from the requirements of disclosures and the second and the most important reason is that the valuation of shares are much more than the stock market price. The mega delisting offer of Anil Agarwal-controlled Vedanta Ltd has failed and the company has decided to return the shares to the shareholders. Copyright © IIFL Securities Ltd. All rights Reserved. Anil Agarwal is taking Vedanta Ltd private. Bankers to Vedanta - DAM Capital and JP Morgan - had attributed the setback to technical glitches in the BSE tendering website, which affected public participation, and had even approached the Securities and Exchange Board of India (SEBI) seeking a one day extension in the confirmation deadline, reports suggested. How investors will see it and what impact will the development have on the price … On May 12, Vedanta Resources PLC, the holding company of Vedanta Ltd of India announced its decision to delist the Indian company from all stock exchanges. Vedanta said that 125.47 crore shares were validly tendered by … According to data available from stock exchanges, 137.74 crore shares were tendered at various price levels starting from Rs 87.25 a share. For more information, read the "Cookie Policy" under, Aims, Objectives and Importance of Demat Account, Documents Required to Open a Demat Account, Difference Between Demat and Trading Account, Documents Required to open a Demat Account, Difference Between Demat and Trading Account, Difference between NRE, NRI and NRO Account. A harbinger of good times? Merger with another company. Complete your documentation now on the Instant Account Opening Page. As of a June filing, the Life Insurance Corporation owned 23.67 crore Vedanta shares amounting to a 6.37% stake. Vedanta Resources (VRL) and other promoter group companies have received stock exchange approval for delisting the shares of Vedanta. Common reasons behind voluntary delisting are. Stock Broker SEBI Regn. At the price of Rs87.50, the total outflow for Vedanta … If you do not consent, do not use this website. No final application would be made to delist any of the shares on these bourses, nor for deregistration of equity shares with the SEC. Updates on Vedanta delisting. To de-list the shares from stock exchanges, Vedanta’s UK promoters required 1.34 billion shares. A-, Get Access to Stock Reports+ and Customised Investment Ideas. Temporary Password has been sent to registered number and email address. The Vedanta delisting plan is that it is voluntary, and it is being done to simplify the complex business structure. This website uses information gathering tools such as cookies and other similar technologies. The holding company — Vedanta Resources — … The number of fully paid equity shares in Vedanta, excluding American Depositary Shares (ADS), is 356.10 crore. So far under 3% of the shares required for delisting has been tendered on the BSE. "Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Intention to delist: On May 12, 2020, the Promoter expressed its intention to voluntarily delist the Equity Shares in accordance with Delisting Regulations and highlighted an Indicative Offer Price of … By clicking on submit button, you authorize IIFL & its representatives & agents to provide information about various products, offers and services provided by IIFL through any mode including telephone calls, SMS, letters etc. For more information, read the "Cookie Policy" under Online Privacy Policy. A-, May 13, 2020 12:22 IST Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No: INA000000623, SEBI RA Regn. Indian delisting norms mandate companies to buy shares from 90 per cent shareholders at a discovered price through the reverse book building process. What this meant was that, if the delisting was successful, promoters would have to delist the shares at Rs 320 per share. All equity shares tendered in the delisting offer shall be returned to the respective public shareholders, Vedanta announced; no final application will be made to stock exchanges for delisting. Shares of the company on Tuesday surged almost 12% to close at Rs 89.30 . Subscribe to StockReports+ for All driven quantitative analysis at stock, industry, portfolio and market levels, Go on, subscribe to StockReports+ so that you don’t miss out on the next big idea for trading and investing. - Issued in the interest of investors." Vedanta promoters wanted to buy out 169.73 crore shares or 47.67 per cent stake held by the public to delist the firm. By clicking on Signup, you agree to the Terms and conditions, Open DEMAT + Mutual Fund Account with IIFL, Already a IIFL Securities Account Holder? GET ACCESS TO STOCK REPORTS+ AND TRADING IDEAS, OPEN IIFL DEMAT ACCOUNT AND JOIN 10L+ HAPPY CLIENTS. It happens mainly because company does not see any benefit in keeping its shares on stock exchange and wants more control. At the end of the five-day reverse book building (RBB) process, which ended on October 9, Vedanta acquired only 125.47 crore shares, the listed confirmed. | "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc. | "No need to issue cheques by investors while subscribing to IPO. You have unlocked 3 Free StockReports+ downloads. The delisting failed due to an insufficient number of shares being offered in the buyback proposal of VRL. / Email Address to reset your password. If you do not consent, do not use this website. Metals and mining conglomerate Vedanta, on May 12, announced its holding company’s plans to delist the Indian business. Jingle on the Street! New Delhi: Vedanta Resources on Saturday said that they have failed to garner the required number of shares to delist its Indian subsidiary Vedanta.The number of shares tendered by the public shareholders in the delisting offer was nearly 137.8 crore shares, which was more than the minimum requirement of 134.1 crore shares. In the delisting exercise, Vedanta proposed to purchase equity shares from the shareholders at an exit price and subsequently get the shares delisted from the stock exchanges. Promoters already have 186.36 crore shares, and they needed an additional 134.12 crore out of the public shareholding of 169.73 crore. The Delisting Offer shall be considered successful if the Equity Shares accepted through the Delisting Offer takes the shareholding of the Promoter (along with persons acting in concert) to at least 90% of the paid-up equity share capital of the Company, excluding the shares which are then held by a custodian and against which ADS have been issued, and if the Promoter accepts the final exit offer price (which is … "In connection with the aforesaid delisting offer, we have been informed by Vedanta Resources Limited and its indirect subsidiaries namely, Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited, that the Delisting Offer is deemed to have failed in terms of Regulation 19(1) of the Delisting Regulations," Vedanta told the stock exchanges on Saturday. you confirm that laws in relation to unsolicited communication referred in National Do Not Call Registry as laid down by Telecom Regulatory Authority of India will not be applicable for such information/ communication. The success of the delisting offer, the first phase, hinges on participation of institutional shareholders such as foreign portfolio investors with 65.90 crore shares (18.51%), mutual funds with 31.63 crore shares (8.88%) and LIC. Vedanta Delisting: Share tendering dismal so far; Vedanta delisting fails; company to return all the shares tendered; 8 Comments on this Story. The company will now remain listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the company said in a regulatory filing. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes. Inclusive of ADR shares, public shareholding in Vedanta Ltd is 185.3 crore shares which translates into 49.86% public shareholding. In the past, we have seen marquee companies like Denso India, Chemplast Sanmar, Alfa Laval India, Nirma Ltd, Patni Computers, Binani Cements, Atlas Copco, Syngenta India, Wartsila India, Wimco, E-Serve International etc. This was at ~10% premium when the company made announcement. Vedanta Resources has secured $3.15-billion in debt funding to fund delisting. www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. Earlier public records, however, show that Vedanta had received offers of over 137 crore shares. Open IIFL Demat Account And Join 10 Lac+ Happy Clients. Close Shares of Vedanta traded 2.29 percent down at Rs 160 on BSE at 1220 hours. 90 per cent shares are required to delist the firm, which comes to 320.49 crore. This requires 90 per cent acceptance from all stakeholders. The floor price for the delisting of shares had been set at Rs 87.25 per share but majority of the stocks tendered till Friday by public shareholders were in the range of Rs 140-150 per share. Vedanta, which was trading on both the exchanges went for voluntary delisting of its shares from the share market. "All equity shares tendered in the delisting offer shall be returned to the respective public shareholders," Vedanta further announced. Vedanta's delisting offer is deemed to have failed in terms of the delisting regulations, the company announced. Then the shareholder which had bid for x will still have an option to sell the shares to the company at x minus y; whatever is the delisting price. Skb Gmail 87 days ago. The number of fully paid equity shares in Vedanta, excluding American Depositary Shares (ADS), is 356.10 crore. What upset the Vedanta plan is the decision by LIC, which holds 6.37 per cent in Vedanta, to submit all its shares at a price of Rs 320, a 266 per cent premium over the floor price of Rs 87.25 per share. In this case, the buyback price offered to the shareholders is more price than the prevailing stock price. On 24th June’20, firm got shareholder’s nod for delisting. Vedanta announced that it was able to garner offers for only around 125 crore shares instead of the 134 crore shares required for the delisting process to go through. By clicking 'Accept' on this banner or by using this website, you consent to the use of cookies unless you have disabled them. . It further added its American Depository Schemes will remain listed on the New York Stock Exchange (NYSE) and its equity shares will remain registered with the Securities and Exchanges Commission (SEC) in the US. Our representative will contact you shortly! Vedanta Resources has agreed to buy back the public shareholding of Vedanta Ltd at a price of Rs87.50 per share; a small discount to the current market price. Vedanta failed to complete its delisting process as promoters failed to secure the required number of shares the end of reverse book building process. Investors have a choice to either participate or not to participate. No: INP000002213, IA SEBI Regn. What does the delisting mean for shareholders of Vedanta Ltd and what is the trigger for the delisting? India Infoline News Service, A+ Vedanta’s decision to delist follows Vedanta Resources, one of the promoter group firms, making an indicative offer of Rs 87.50 to buy out all the public shareholders in the company. 90 per cent shares are required to delist the firm, which comes to 320.49 crore. Temporary Password will be sent to your Mobile No. The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." Vedanta Ltd stepped closer to being delisted from Indian bourses after 137.74 crore shares were tendered at the close of the buyback offer made by the promoters. A+ Life Insurance Corporation of India (LIC), which held 6.37% in Vedanta, offered to sell all its shares at Rs 320 per share, which was a 267% premium over the floor price of Rs 87.5. Billionaire Anil Agarwal’s Vedanta Ltd.’s delisting offer opened on Oct. 5. The shares of Vedanta Resources fell nearly a percent and a half on Tuesday morning (May 19) after the Board of Directors approved the delisting of the stock at ₹87.5 a piece. It is at your, the user's, discretion to proceed with accessing this website. Click Here to trade, Start investing in Equities, Derivatives, Mutual Funds and Currency. Around 12.32 crore tendered shares could not be confirmed by the end of the RBB process. Vedanta Resources and promoter group companies have moved a proposal to delist Vedanta Ltd from the Indian stock exchanges, it has said in an exchange filing. On the site we feature industry and political leaders, entrepreneurs, and trend setters. | Our representative will contact you shortly! Discovered price refers to the bid prices of the shares that help the delisting process cross its acceptance level, which was 134.1 crore shares in the case of Vedanta. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. At the price of Rs87.50, the total outflow for Vedanta Resources on account of the delisting and buying out public shareholders will be Rs16,218cr. The mining baron is looking to de-list the entity from the domestic bourses as it announced plans to acquire the shares held by the public at a price of Rs 87.5 per share. You must have heard of Vedanta delisting that took place this month. It is at your, the user's, discretion to proceed with accessing this website. Shares of Vedanta Limited ended at Rs 122.10 per share on Friday, up 3.83 percent from their previous close. Below is the timeline on how the process will play out. Voluntary delisting is nothing new. The delisting will be done on the stock exchanges via the process of reverse book building, which will enable eventual price discovery. Later in June, in a special resolution by postal ballot, 93.3 per cent of all shareholders and 84.3 per cent of public shareholders approved delisting of shares of Vedanta. ), you need not undergo the same process again when you approach another intermediary." Promoters of the … Most numbers of 21.51 crore shares were offered at a price of Rs 160 per share, followed by 18.9 crore shares at Rs 145 and another 10.87 crore shares being offered at a price of Rs 153 apiece. The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. Promoters of the company needed 134.1 crore shares to complete the delisting process. No worries for refund as the money remains in investor's account.". In a post offer announcement, Vedanta confirmed that the company will remain listed on the stock exchanges, BSE and NSE. No: INZ000164132, PMS SEBI Regn. Vedanta has given an indication of INR 87.5 to delist the shares. At the end of the five-day reverse book building (RBB) process, which ended on October 9, Vedanta acquired only 125.47 crore shares, the listed confirmed. The move comes weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. Thank you! 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