vedanta delisting shares

Temporary Password will be sent to your Mobile No. 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. They had even have raised $3.15 billion (about Rs 24,000 crore) to fund the delisting. Close Shares of Vedanta traded 2.29 percent down at Rs 160 on BSE at 1220 hours. 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. 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. 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. In a post offer announcement, Vedanta confirmed that the company will remain listed on the stock exchanges, BSE and NSE. Vedanta, which was trading on both the exchanges went for voluntary delisting of its shares from the share market. Stock Broker SEBI Regn. ), you need not undergo the same process again when you approach another intermediary." Vedanta's delisting offer is deemed to have failed in terms of the delisting regulations, the company announced. Merger with another company. 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. Metals and mining conglomerate Vedanta, on May 12, announced its holding company’s plans to delist the Indian business. Jingle on the Street! 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. India Infoline News Service, A+ The number of fully paid equity shares in Vedanta, excluding American Depositary Shares (ADS), is 356.10 crore. The delisting failed due to an insufficient number of shares being offered in the buyback proposal of VRL. 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. Copyright © IIFL Securities Ltd. All rights Reserved. It happens mainly because company does not see any benefit in keeping its shares on stock exchange and wants more control. Our representative will contact you shortly! 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. Around 12.32 crore tendered shares could not be confirmed by the end of the RBB process. Shares of Vedanta Limited ended at Rs 122.10 per share on Friday, up 3.83 percent from their previous close. No worries for refund as the money remains in investor's account.". On the site we feature industry and political leaders, entrepreneurs, and trend setters. 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. 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. A-, May 13, 2020 12:22 IST Promoters of the company needed 134.1 crore shares to complete the delisting process. 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. - Issued in the interest of investors." 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. Vedanta promoters wanted to buy out 169.73 crore shares or 47.67 per cent stake held by the public to delist the firm. 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. A harbinger of good times? 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. 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. Voluntary delisting is nothing new. Vedanta Delisting: Share tendering dismal so far; Vedanta delisting fails; company to return all the shares tendered; 8 Comments on this Story. 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 research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others. Vedanta has given an indication of INR 87.5 to delist the shares. "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. The delisting will be done on the stock exchanges via the process of reverse book building, which will enable eventual price discovery. At the price of Rs87.50, the total outflow for Vedanta … To de-list the shares from stock exchanges, Vedanta’s UK promoters required 1.34 billion shares. Earlier public records, however, show that Vedanta had received offers of over 137 crore shares. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. 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. In this case, the buyback price offered to the shareholders is more price than the prevailing stock price. "All equity shares tendered in the delisting offer shall be returned to the respective public shareholders," Vedanta further announced. But, after the announcement the stock price rose past the given price. Thank you! Common reasons behind voluntary delisting are. 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 … 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 … "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. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. Inclusive of ADR shares, public shareholding in Vedanta Ltd is 185.3 crore shares which translates into 49.86% public shareholding. 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. Indian delisting norms mandate companies to buy shares from 90 per cent shareholders at a discovered price through the reverse book building process. www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. 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 … Promoters of the … "Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. By clicking 'Accept' on this banner or by using this website, you consent to the use of cookies unless you have disabled them. So far under 3% of the shares required for delisting has been tendered on the BSE. Below is the timeline on how the process will play out. 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. The move comes weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. The Vedanta delisting plan is that it is voluntary, and it is being done to simplify the complex business structure. 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. This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes. 90 per cent shares are required to delist the firm, which comes to 320.49 crore. As of a June filing, the Life Insurance Corporation owned 23.67 crore Vedanta shares amounting to a 6.37% stake. For the delisting failed due to an insufficient number of shares being offered in the application form to your... Stock REPORTS+ and trading IDEAS, OPEN IIFL DEMAT account and JOIN 10L+ CLIENTS... 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