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 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. In the past two years Vedanta is the third company to make an unsuccessful delisting effort after INEOS Styrolution and Linde India. Subsequently, company obtained the shareholder’s nod to take it private successfully. 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 delisting: Anil Agarwal's latest move raises a few questions On May 12, Vedanta said it plans to de-list from Indian stock exchanges. 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. 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. 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. 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. Cairn India was merged into Vedanta in April 2017, and the shares of former were delisted. PTI; October 01, 2020, 17:26 IST Join our. 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 … 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? The company’s dividend distribution policy says normal dividend received from Hindustan Zinc shall be passed on to its shareholders in entirety. Had the delisting been successful, promoters would have to delist the shares at Rs 320 apiece. As the delisting efforts of the company became unsuccessful, the equity shares tendered by the public shareholders will be returned by october 23, 2020. In August, Vedanta had moved the apex court challenging the Madras High Court order refusing to allow reopening of the Tuticorin plant. Sebi delisting rules suggest that counter offer price can not be less than the book value of the company. The process would have continued if the counter-offer did not attract enough number of shareholders. If the delisting had garned the required number then promoters could have made a counter offer at more than Rs 150 per share. Bloomberg | Quint is a multiplatform, Indian business and financial news company. : INM000002970. … Vedanta is the third company to make unsuccessful delisting efforts in the last two years after INEOS Styrolution and Linde India. 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. 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. 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. 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. Anil Agarwal, billionaire and chairman of Vedanta Resources Plc in London, U.K. (Photographer: Simon Dawson/Bloomberg). DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. Read more here. Vedanta faces do or die battle if delisting fails. Experts note this discrepancy was a result of certain offers of share sales not being confirmed by foreign shareholders. 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. 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. In May, the promoters of Vedanta had announced a delisting offer at Rs 87.5 per share. 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. Vedanta delisting: 12 crore shares 'suspected' error entries For the delisting to be successful, an eligible number of shares have to be tendered so … 12/14: Asian ADRs Nudge Lower in Monday Trading: MT. A + A-Why is Vedanta delisting and what should shareholders do? As per the consolidated balance sheet of the company as on March 2020, book value of Vedanta could be Rs 147 per share. 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. 34-35% of shares are held by institutional holders. 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. As per the consolidated balance sheet of the company as on March 2020, book value of Vedanta could be Rs 147 per share. Prince Mathews Thomas . 12/11 : Asian ADRs Move Higher in Friday Trading: MT. IIFL View. Vedanta’s delisting process will open on October 5. are yet … That is said to have reduced as the total financial institutional holding stood reduced to 5.89% as on Sept. 25. 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. 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 shares fell to 109.70 rupees apiece on Monday. 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