If you do not consent, do not use this website. 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. Vedanta, which was trading on both the exchanges went for voluntary delisting of its shares from the share market. Inclusive of ADR shares, public shareholding in Vedanta Ltd is 185.3 crore shares which translates into 49.86% public shareholding. Indian delisting norms mandate companies to buy shares from 90 per cent shareholders at a discovered price through the reverse book building process. On the site we feature industry and political leaders, entrepreneurs, and trend setters. 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. 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 Delisting: Share tendering dismal so far; Vedanta delisting fails; company to return all the shares tendered; 8 Comments on this Story. The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. Around 12.32 crore tendered shares could not be confirmed by the end of the RBB process. 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. No: INA000000623, SEBI RA Regn. Our representative will contact you shortly! The delisting will be done on the stock exchanges via the process of reverse book building, which will enable eventual price discovery. Investors have a choice to either participate or not to participate. No: INP000002213, IA SEBI Regn. The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. At the price of Rs87.50, the total outflow for Vedanta … 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. In this case, the buyback price offered to the shareholders is more price than the prevailing stock price. You have unlocked 3 Free StockReports+ downloads. Common reasons behind voluntary delisting are. 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 company will now remain listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the company said in a regulatory filing. What this meant was that, if the delisting was successful, promoters would have to delist the shares at Rs 320 per share. | 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. As of a June filing, the Life Insurance Corporation owned 23.67 crore Vedanta shares amounting to a 6.37% stake. It happens mainly because company does not see any benefit in keeping its shares on stock exchange and wants more control. 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. 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. If company receives more than 90% in reverse book building, it can force delisting of the company. A harbinger of good times? The exit price was to be determined by a reverse book building process. If you do not consent, do not use this website. By clicking 'Accept' on this banner or by using this website, you consent to the use of cookies unless you have disabled them. . ), you need not undergo the same process again when you approach another intermediary." 90 per cent shares are required to delist the firm, which comes to 320.49 crore. So far under 3% of the shares required for delisting has been tendered on the BSE. Billionaire Anil Agarwal’s Vedanta Ltd.’s delisting offer opened on Oct. 5. 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 Online Privacy Policy. Stock Broker SEBI Regn. Vedanta promoters wanted to buy out 169.73 crore shares or 47.67 per cent stake held by the public to delist the firm. Shares of the company on Tuesday surged almost 12% to close at Rs 89.30 . Vedanta's delisting offer is deemed to have failed in terms of the delisting regulations, the company announced. Open IIFL Demat Account And Join 10 Lac+ Happy Clients. 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. Updates on Vedanta delisting. Promoters of the company needed 134.1 crore shares to complete the delisting process. 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. Voluntary delisting is nothing new. Complete your documentation now on the Instant Account Opening Page. 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." The number of fully paid equity shares in Vedanta, excluding American Depositary Shares (ADS), is 356.10 crore. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. 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 website uses information gathering tools such as cookies and other similar technologies. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others. 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. Vedanta Resources has secured $3.15-billion in debt funding to fund delisting. But, after the announcement the stock price rose past the given price. 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. No final application would be made to delist any of the shares on these bourses, nor for deregistration of equity shares with the SEC. It is at your, the user's, discretion to proceed with accessing this website. No: INZ000164132, PMS SEBI Regn. The mega delisting offer of Anil Agarwal-controlled Vedanta Ltd has failed and the company has decided to return the shares to the shareholders. Below is the timeline on how the process will play out. Vedanta has given an indication of INR 87.5 to delist the shares. Temporary Password will be sent to your Mobile No. The move comes weeks after the firm's failed attempt to delist Vedanta Ltd from Indian 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. Anil Agarwal is taking Vedanta Ltd private. 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. Copyright © IIFL Securities Ltd. All rights Reserved. GET ACCESS TO STOCK REPORTS+ AND TRADING IDEAS, OPEN IIFL DEMAT ACCOUNT AND JOIN 10L+ HAPPY CLIENTS. Temporary Password has been sent to registered number and email address. It is at your, the user's, discretion to proceed with accessing this website. Earlier public records, however, show that Vedanta had received offers of over 137 crore shares. 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. India Infoline News Service, A+ What does the delisting mean for shareholders of Vedanta Ltd and what is the trigger for the delisting? This requires 90 per cent acceptance from all stakeholders. | "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc. On 24th June’20, firm got shareholder’s nod for delisting. "Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. "All equity shares tendered in the delisting offer shall be returned to the respective public shareholders," Vedanta further announced. Click Here to trade, Start investing in Equities, Derivatives, Mutual Funds and Currency. 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. 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. By clicking 'Accept' on this banner or by using this website, you consent to the use of cookies unless you have disabled them. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. "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. Promoters of the … 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. No: INH000000248. You must have heard of Vedanta delisting that took place this month. 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. To de-list the shares from stock exchanges, Vedanta’s UK promoters required 1.34 billion shares. 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. The delisting failed due to an insufficient number of shares being offered in the buyback proposal of VRL. Vedanta Resources (VRL) and other promoter group companies have received stock exchange approval for delisting the shares of Vedanta. How investors will see it and what impact will the development have on the price … Jingle on the Street! No worries for refund as the money remains in investor's account.". | "No need to issue cheques by investors while subscribing to IPO. Close Shares of Vedanta traded 2.29 percent down at Rs 160 on BSE at 1220 hours. A-, Get Access to Stock Reports+ and Customised Investment Ideas. 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. 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. By clicking on Signup, you agree to the Terms and conditions, Open DEMAT + Mutual Fund Account with IIFL, Already a IIFL Securities Account Holder? 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. 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 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. Shares of Vedanta Limited ended at Rs 122.10 per share on Friday, up 3.83 percent from their previous close. Skb Gmail 87 days ago. Vedanta failed to complete its delisting process as promoters failed to secure the required number of shares the end of reverse book building process. Our representative will contact you shortly! 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. - Issued in the interest of investors." The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. This was at ~10% premium when the company made announcement. The Vedanta delisting plan is that it is voluntary, and it is being done to simplify the complex business structure. www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. Inclusive of ADR shares, public shareholding in Vedanta Ltd is 185.3 crore shares which translates into 49.86% public shareholding. Delisting is the word for this phenomenon. Metals and mining conglomerate Vedanta, on May 12, announced its holding company’s plans to delist the Indian business. 90 per cent shares are required to delist the firm, which comes to 320.49 crore. Vedanta said that 125.47 crore shares were validly tendered by … A-, May 13, 2020 12:22 IST The move came weeks after the firm's failed attempt to delist Vedanta Ltd from Indian stock exchanges. This website uses information gathering tools such as cookies and other similar technologies. "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. They had even have raised $3.15 billion (about Rs 24,000 crore) to fund the delisting. Merger with another company. This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes. 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. 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 a post offer announcement, Vedanta confirmed that the company will remain listed on the stock exchanges, BSE and NSE. 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. / Email Address to reset your password. 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. A+ Thank you! 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. 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. 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. The holding company — Vedanta Resources — … The number of fully paid equity shares in Vedanta, excluding American Depositary Shares (ADS), is 356.10 crore. Promoters of the IIFL Group, a leading financial services player and a diversified NBFC to delisting! 134.12 crore out of the company will remain listed on the Instant account Opening.. For the delisting mean for shareholders of Vedanta traded 2.29 percent down at Rs 122.10 per share on Friday up! 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