Vedanta delisting: Anil Agarwal's latest move raises a few questions On May 12, Vedanta said it plans to de-list from Indian stock exchanges. Vedanta Delisting: Zee Business Managing Editor Anil Singhvi explains that promoters need to hold 90% shares of the company for the delisting to be successful.Promoters already have 50% shares in the company and they need to get an additional 148 cr shares in the delisting process. 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. That is said to have reduced as the total financial institutional holding stood reduced to 5.89% as on Sept. 25. They had announced plans of delisting its shares. Gupta added that a counter offer from the promoters of … Home >Companies >News >Vedanta pledges Hindustan Zinc stake to raise ₹ 10,000 crore. … Sebi delisting rules suggest that counter offer price can not be less than the book value of the company. 34-35% of shares are held by institutional holders. NIA files chargesheet in Kerala gold smuggling case; identifies KT Ramees as mastermind, MP CM, Shivraj Singh Chouhan calls emergency meet over increasing Bird flu, Stock market investment ideas recommended by top market experts | High Risk Low Risk Ideas | ET Now, Tata Motors Back In The Race? More Top News . The delisting of Anil Agarwal - led Vedanta Ltd. saw a turn in fortune in the late evening hours of Oct. 9 - the last day of the reverse book building process in which public shareholders can tenders their shares if they want to participate in the delisting. India Revival Mission - Anil Agarwal of Vedanta | Exclusive, ET Now Exclusive: Vedanta Promoters may up stake by another 10%, Top stocks in focus: Vedanta Limited, Adani Green & More (31 Dec). As the delisting efforts of the company became unsuccessful, the equity shares tendered by the public shareholders will be returned by october 23, 2020. Home >Companies >News >Vedanta delisting faces small shareholder snag The biggest institutional shareholders of Vedanta include ICICI Prudential Mutual Fund, … The shares tendered are more than the 134 crore shares out of the public holding of 169.73 crore that the promoter group headed by billionaire Anil Agrawal needed for delisting of the company. Note: The number of shares needed for the offer to succeed may vary depending on if ADS conversion to underlying shares takes place. The reasons for why they remain unconfirmed are yet to be clear. 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. Worth mentioning here is that discovered price is that price at which the aggregate number of shares bid till that price, if delisted, will take the promoters' shareholding in the company to at least 90% (which was 134.1 crore shares in the case of Vedanta). "All equity shares tendered in the delisting offer shall be returned to the respective public shareholders," Vedanta further announced. It operates iron ore, gold, and aluminum mines in the states of Goa, Rajasthan, and Odisha. An email query sent to Vedanta went unanswered. PTI; October 01, 2020, 17:26 IST A + A-Why is Vedanta delisting and what should shareholders do? Altough there is a provision of counter offer if promoters found that discovered price is too high, in case of Vedanta, there is no scope for that as the delisting attempt did not garnered the required number of shares. Vedanta delisting offer fails – Top Indian Market News . As you may have noticed, the company has been all over the news since May. IIFL View. For a successful delisting, 1.34 billion shares had to be tendered, while the company received just 1.25 billion shares. Bankers to the delisting offer have requested securities regulator SEBI for a one-day extension, on grounds that glitches in the exchange tendering webpage hurt participation, according to one official close to the process who didn't want to be named. Vedanta faces do or die battle if delisting fails. Vedanta delisting: 12 crore shares 'suspected' error entries For the delisting to be successful, an eligible number of shares have to be tendered so … SHARES NEEDEDNo. are yet … Subsequently, company obtained the shareholder’s nod to take it private successfully. LIC, which held 6.37% in Vedanta, submitted all its shares at a price of Rs 320, a 267% premium over the floor price of Rs 87.25 upsetting Vedanta’s calculations. Oct. 10 Update: Vedanta delisting offer fails. Vedanta Resources, the parent, has mobilised USD 3.15 billion for the delisting exercise, resulting in total debt of the group swelling to over Rs 1,25,000 crore. Written by Cherian Varghese Posted on October 10, 2020 October 11, 2020 Less than 0 min read . If they fail to reach 90% shareholding the delisting offer will have failed.Exit PriceThe price at which 90% shareholding is achieved -- whether it’s the discovered price, if accepted by the promoters, or a counter offer price -- will be deemed the exit price. The company’s dividend distribution policy says normal dividend received from Hindustan Zinc shall be passed on to its shareholders in entirety. Experts note this discrepancy was a result of certain offers of share sales not being confirmed by foreign shareholders. Loan moratorium cannot be exceeded beyond six months: RBI tells Supreme Court. The last date to announce this price, and the acceptance level, is Oct. 16.The promoters are required to purchase all shares offered at this price. As per the consolidated balance sheet of the company as on March 2020, book value of Vedanta could be Rs 147 per share. Vedanta Limited’s promoters need to raise their shareholding to 90% for the successful delisting. If the delisting had garned the required number then promoters could have made a counter offer at more than Rs 150 per share. Read more here. Public Shareholders: Holders of Equity Shares, other than the following: promoters, promoter group and persons acting in concert with them; and; holders of depository receipts issued overseas against Equity Shares held with a custodian (i.e., the American Depository Shares issued by the Company ("ADS")) and such custodian holding the Equity … LIC, which held 6.37 per cent in Vedanta, submitted all its shares at a price of Rs 320, a 267 per cent premium over the floor price of Rs 87.25, upsetting Vedanta's calculations. Billionaire Anil Agarwal-backed Vedanta's delisting offer is deemed to have failed, the company informed exchanges on October 10. In the past two years Vedanta is the third company to make an unsuccessful delisting effort after INEOS Styrolution and Linde India. New Delhi: Vedanta Resources on Saturday said that they have failed to garner the required number of shares to delist its Indian subsidiary Vedanta. As per the consolidated balance sheet of the company as on March 2020, book value of Vedanta could be Rs 147 per share. Vedanta delisting: 17.15 crore shares are tendered so far Vedanta gets in-principle nod for delisting . Participation is open to all public shareholders irrespective of whether they participated in the reverse book building process.If, via the counter offer, the promoters are able to reach 90% shareholding, then the delisting will have completed the second, most critical phase. The company said the delisting of Vedanta from the BSE and the NSE will simplify its … On May 12, Vedanta Resources PLC, founded by metals and mining baron Anil Agarwal, announced its decision to voluntary delist its Indian company, Vedanta Ltd, from stock exchanges. If an extension is given, at the end of which atleast 134.12 crore shares are tendered in confirmed bids, then VRL will have succeeded in the first phase of the process. American Depositary Share holders include promoter and public and total 26.26 crore shares. Sebi delisting rules suggest that counter offer price can not be less than the book value of the company. Group chairman and billionaire Anil Agarwal told https://bit.ly/2GMjhUY CNBC-TV18 on Friday the company will go for a counter offer if it was needed. What happens next? A counter offer price is lower than the discovered price but not less than the book value of the company.The last date for announcement of a counter offer is Oct. 13. Anil Agarwal, billionaire and chairman of Vedanta Resources Plc in London, U.K. (Photographer: Simon Dawson/Bloomberg). Tags Business news LIC LIC chairman Markets stock markets Stocks Vedanta Vedanta delisting Subscribe to Moneycontrol Pro at ₹499 for the first … Earlier public records, however, show that Vedanta had received offers of over 137 crore shares. In May, the promoters of Vedanta had announced a delisting offer at Rs 87.5 per share. Shareholders will then have an opportunity to tender their shares, or not, at that price. Contact person: Mr. Murali Krishna ... All news about VEDANTA LIMITED: 12/16: Indian shares close at record high on financial, IT sector boost: RE. The bidding was to have closed at the end of market hours, but due to glitches earlier in the day, on account of which some shareholders reportedly faced trouble in tendering shares, the Bombay Stock Exchange extended the bidding till 7 p.m. By 7:35 p.m., the BSE website showed that only 125.47 crore shares were confirmed to be tendered and bids worth 12.31 crore shares were yet to be confirmed. LIC, which held 6.37% in Vedanta, tendered all its shares at Rs 320, a 267% premium over the floor price of Rs 87.25, which upset Vedanta's calculations. Zee Business Managing Editor Anil Singhvi has said that by the end of Friday — last date to tender Vedanta shares — net shares tendered is expected to reach up to 90 per cent as big institutions like LIC, ICICI Prudential, HDFC Equity Fund, Citi Bank, etc. Prince Mathews Thomas . 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. Vedanta's delisting efforts fails. After the failed delisting, shares of Vedanta … Join our. At about 3:30 p.m. the metals major looked set to receive more than the 134.12 crore shares it needed for its promoter to cross the 90% threshold required for a successful delisting. : INM000002970. As of a June filing, the Life Insurance Corporation owned 23.67 crore Vedanta shares amounting to a 6.37% stake. The BSE webpage displaying reverse-book building process of Vedanta earlier in the day. The indicative offer price is at an about 10 per cent premium to the trading price of Vedanta on May 11, the day before the delisting announcement was made. Shares of Vedanta tanked 10 per cent to Rs 109.90 on the BSE in the early morning trade on Monday, after the company announced the failure of delisting offer as the promoters failed to garner the required number of shares. 90% ThresholdIf the reverse book building process is not extended, then as per the last available data Vedanta Resources Ltd., the parent company making the delisting offer, will have insufficient shares to cross the 90% shareholding threshold and the delisting will have failed. 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. New Delhi: You must have recently heard the news of Vedanta delisting. Counter OfferThe price at which VRL can reach 90% shareholding is the discovered price in a reverse book building process. The delisting of Anil Agarwal - led Vedanta Ltd. saw a turn in fortune in the late evening hours of Oct. 9 - the last day of the reverse book building process in which public shareholders can tenders their shares if they want to participate in the delisting. At about 3:30 p.m. the metals major looked set to receive more than the 134.12 crore shares it needed for its promoter to cross the 90% threshold required for a successful delisting. Anil Agarwal-led Vedanta, which was trading on both the exchanges, on 12 May announced that its promoter is planning to take the company private. The delisting process requires a majority of the public shareholders to vote in favour of the resolution or at least twice the number of votes cast against it. 12/14: Asian ADRs Nudge Lower in Monday Trading: MT. Vedanta Limited is one of the leading mining companies based in India. Missing BloombergQuint's WhatsApp service? 12/11 : Asian ADRs Move Higher in Friday Trading: MT. Vedanta is the third company to make unsuccessful delisting efforts in the last two years after INEOS Styrolution and Linde India. Cairn India was merged into Vedanta in April 2017, and the shares of former were delisted. The Reserve Bank of India (RBI) filed an affidavit before the Supreme Court, stating that it cannot give more time as relief for sectors affected by the … Email: vedanta.delisting@kfintech.com SEBI registration no. The process would have continued if the counter-offer did not attract enough number of shareholders. Vedanta’s delisting process will open on October 5. For the delisting to be successful, promoter holding after the public tender of shares should have been 90% but with 125.47 crore valid tendered shares promoter holding would not touch 90%. Vedanta Delisting With Anil Singhvi: The company is about to finish the process and 55 per cent of the net shares have been tendered till date. Read latest news and live updates on Vedanta-delisting including breaking news on Vedanta-delisting,Vedanta-delisting photos,Vedanta-delisting videos and many more at cnbctv18.com. Check details. VRL seeks to also delist the ADS. of fully paid up equity shares (excl ADS): 356,10,08,83590% of that: 320,49,07951Promoters have: 186,36,18,788They need additional: 134,12,89163Total shares with public: 169,73,90,047, THE PRICEFloor price/Indicative offer price: Rs 87.25/shareDiscovered price: Yet to be announcedCounter offer price: If promoters choose to make oneExit price: Price at which 90% shareholding is achieved, Delisting offer size (at discovered price): 134,12,89163 shares x Discovered price. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. Retail shareholders own 7.56% or 26.91 crore shares. Top News. At that time, public shareholders had tendered 137.1 crore of the total 169.73 crore shares held by them, though some bids were pending confirmation from custodians. Hormazd Sorabjee View, Hyderabad: Former hockey player among three abducted by men posing as Income Tax officials, GSHSEB likely to conduct Class 10, 12 exams in May, Rourkela Steel Plant gas leak in Odisha; four workers dead, Kerala Akshaya AK-479 state lottery results toda, Ahmedabad: 25 healthcare workers get vaccinated in dry run, Delhi: Online sextortion racket busted, 6 arrested, These 3 banks offer interest up to 7.5%: Check latest rates, How salaried individuals can claim HRA exemption in ITR, 'If all depositors withdraw money, PMC Bank will collapse', US' H-1B ban extension and its impact on India's techies, New wage rules to help you save tax. If the delisting had garned the required number then promoters could have made a counter offer at more than Rs 150 per share. 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. In August, Vedanta had moved the apex court challenging the Madras High Court order refusing to allow reopening of the Tuticorin plant. Payment to all shareholders who tender their shares at that price will have to be made by Oct. 23.That’s also the date by which all shares have to be returned in case the delisting offer fails. However, out of the 137.8 crore shares, only 125.47 crore shares were confirmed bids and were valid so the delisting was considered to be unsuccessful. Now, LIC's bid price is the discovered price for the reverse book building process. Bloomberg | Quint is a multiplatform, Indian business and financial news company. Had the delisting been successful, promoters would have to delist the shares at Rs 320 apiece. More IIFL View . In the counter offer if the minimum required number of shares would have been tendered by the public shareholders then the delisting would have gone through at the counter-offer price made by the promoters. Vedanta shares fell to 109.70 rupees apiece on Monday. In May, the promoters of Vedanta had announced a delisting offer at Rs 87.5 per share. It's not yet known if SEBI will grant that extension and if it will be adequate for the delisting process to achieve the 90% threshold. Vedanta is the third company to make unsuccessful delisting efforts in last two years after INEOS Styrolution and Linde India. 1. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. Opportunity to tender their shares, or not, at that price per the consolidated balance sheet of company! 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