As set out in the Offer Document, now that the Offer has become unconditional in all ... October 2018 being 20 Business Days from the date of this announcement. Use Code: PRO2021. You must have heard of Vedanta delisting that took place this month. Till 09:23 am, a combined 2.4 million equity shares had changed hands on the NSE and … How should the investors see this? For the resolution to be approved, two-thirds of the public shareholders will have to vote in favor of delisting. Hence, chances of shares getting delisted at the offer price given by company are slim. Step 2:  Post shareholder approval, the company will file for reverse book building process with the stock exchanges (Stock exchange approvals typically takes 2-3 weeks), Step 3: Once the approvals are in place, the reverse book building exercise starts on the stock exchange platform. Bloomberg | Quint is a multiplatform, Indian business and financial news company. Read more here. 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… As of a June filing, the Life Insurance Corporation owned 23.67 crore Vedanta shares amounting to a 6.37% stake. The envelope should be marked as “Vedanta Limited - Delisting Offer 2020”. On October 10, Vedanta Ltd announced that its voluntary delisting offer, to acquire the balance shareholding in Mumbai-listed Vedanta Ltd and then delisting it … The reasons for why they remain unconfirmed are yet to be clear. 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. The trend of companies looking to delist from the bourses appears to be picking up. VRL seeks to also delist the ADS. 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. Main reasons for delisting are – corporate simplification which will provide financial and operational flexibility. Vedanta Limited's delisting process starts today and will remain open this week. Oct. 10 Update: Vedanta delisting offer fails. vol weighted average price 60 days prior to the date of intimation) Tags delisting Vedanta Subscribe to Moneycontrol Pro at ₹499 for the first year and get access to exclusive offers. 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. Assuming that shareholders and the company board agree on the discovered price, the delisting process will take a minimum of 8-10 weeks from the date of announcement of the shareholder meeting to approve the delisting proposal. Vedanta, which was trading on both the exchanges went for voluntary delisting of its shares from the share market. 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. ... Days after its bid for delisting failing, the Vedanta board on Saturday approved interim dividend of ₹9.50 per share. Stock Market Live: Sensex trades higher, Nifty above 14,000; financials, IT stocks lead; Small, midcaps outperform, Wall St advances, dollar declines as remarkable year nears finish line, Yearender 2020: A historic oil price collapse, with worries headed into 2021. Prince Mathews Thomas. The holding company — Vedanta Resources — … The promoters have raised $3.15 billion to fund the delisting. Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here Get more India News and Business News on Zee Business. NEW DELHI: Vedanta Ltd, the metals to mining conglomerate, may find it tough to survive if its corporate restructuring exercise fails as the group is faced with burgeoning debt on one hand and falling revenues on the other, analysts said. ... Extension of ITR Filing Last Date… The record date for the purpose of payment of dividend is October 31, a filing by Vedanta Ltd to BSE said. 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. Shareholders were waiting for the dividend announcement from Vedanta after the company's delisting … Vedanta delisting update Promoters get minimum shares required but bids way above floor price. Record date for the same is 31 October. Let's talk about: 1) Important Dates 2) Bid Price 3) How to bid. Step 4: All the quotes are aggregated and a final price, also known as the 'discovered price' is announced on the last day of the book-building exercise. That is said to have reduced as the total financial institutional holding stood reduced to 5.89% as on Sept. 25. 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 market is abuzz with chatter than many other companies are exploring the delisting option. Vedanta closed at ₹123.60 on the BSE on Wednesday, a loss of 10.40 per cent over the previous day’s close. Bid Opening Date: October 05, 2020 Bid Closing Date: October 09, 2020 ©TV18 Broadcast Limited. In normal circumstances, if the shareholders and the Board of Directors agreed on the discovered price, the delisting process would take a minimum of 8-10 weeks (from the date of announcement of shareholder approval). 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 … The Offer remains open until further notice, and Vedanta Resources encourages all remaining shareholders to accept into the Offer. After his buy out of Cairn, Vedanta set in motion the process of delisting the cash-rich Cairn India in 2016 and merge it fully with self. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. New Delhi: The reverse book building exercise to delist Vedanta Ltd's shares from the BSE and National Stock Exchange saw over 17.15 crore shares being tendered till Wednesday, according to stock exchange data. The record date for the purpose of payment of dividend is October 31, the filing said. The book is kept open for 5 working days. The announcement comes days after the failed delisting offer of the conglomerate. FAQS ON THE PROPOSED DELISTING OF VEDANTA LIMITED KEY TERMS ... Equity Shares to the Promoter up to a period of one year from the date of delisting and, in such case, the Promoter will accept the Equity Shares at the final exit offer price. The interim dividend will be paid within stipulated timelines as prescribed under law, it added. The stock trades in the futures & option (F&O) segment, which has no circuit limits. If the promoter fails to increase his stake to 90 percent, the company cannot delist. 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. How will the final offer price be determined for the Delisting? Sept 6: If the discovered price is not acceptable to the board/acquirer, it can announce a counter offer, which will be higher than the price offered initially. American Depositary Share holders include promoter and public and total 26.26 crore shares. Earlier this month, Anil Agarwal-promoted Vedanta Limited announced intention to delist from the Indian stock exchanges. On the 18th of May, the Board of Directors of Vedanta Ltd held a meeting to decide whether Vedanta Ltd should be delisted or not. Subscribe to Moneycontrol Pro at ₹499 for the first year and get access to exclusive offers. Wrapping 2020 with a subtle depreciation- What’s on the cards for the Rupee in 2021. 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. Anil Agarwal-led Vedanta Resources on Saturday said it had failed to receive the required number of shares to delist Vedanta Limited. Vedanta is the third company to make unsuccessful delisting efforts in the last two years after INEOS Styrolution and Linde India. In Pics | 10 books business leaders read in 2020. 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. 10 key things to know about Vedanta delisting; brokerages say Q1 earnings better than expected ... to the promoter up to a period of one year from the date of 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. 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. 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. Four gadgets you should invest in for good health. Metals and mining conglomerate Vedanta, on May 12, announced its holding company’s plans to delist the Indian business. Step 7: For the delisting process to be successful, the promoter's stake in the company will have to go up to 90 percent. 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. 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. Anil Agarwal, billionaire and chairman of Vedanta Resources Plc in London, U.K. (Photographer: Simon Dawson/Bloomberg). Billionaire Anil Agarwal-controlled Vedanta on Tuesday said it has received in-principle approval from stock exchanges -- BSE and National Stock Exchange of India (NSE) -- for its delisting … Remember, this is basically an approval for the delisting proposal, and has nothing to do with the price offered by the promoter group. Step 5: The company board will have to accept/reject the discovered price within 5 working days from the closure of the book-building exercise. Limited period offer. Step 1: Vedanta Limited will seek shareholders’ approval for the delisting proposal by way of a special resolution through postal ballot and e-voting (This can typically take 4-5 weeks). Note: The number of shares needed for the offer to succeed may vary depending on if ADS conversion to underlying shares takes place. May 13, 2020 / 03:20 PM IST . PRICING AND IMPACT 1. 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. Advertisement . The nod came after it reviewed the due diligence report submitted by SBI Capital Markets. SHARES NEEDEDNo. Important Dates . Delisting is the word for this phenomenon. 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. Shareholders quote a price at which they are willing to tender their shares. Delisting of Vedanta Shares . All rights reserved. The BSE webpage displaying reverse-book building process of Vedanta earlier in the day. Counter OfferThe price at which VRL can reach 90% shareholding is the discovered price in a reverse book building process. *Delisting floor price is calculated by SEBI formula ( i.e. 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. 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. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION This Letter of Offer ("Letter of Offer"/ "LOF") is being sent to you as a Public Shareholder (defined below) of Vedanta Limited as on the Specified Date (defined below) in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, as amended ("Delisting … The board of directors of Vedanta Ltd. on Monday approved a proposal to delist the company. The Seller Member/Public Shareholder should ensure to deliver the documents as mentioned above along with the TRS either by registered post or courier or hand delivery to the Registrar to the offer within 2 days of the Bid Closing Date by the Seller Member. Vedanta Ltd. ANALYST Parvati Rai, head -research@krchoksey.com, +91 22 6696 5413 Delisting: Floor price below the fair value Event highlights • 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. As per guidelines, It is mandatory for VEDANTA promoters to hold at least 90% stake to delist and public shareholding in Vedanta is currently at 49.49% or 183.98 crore shares. Vedanta Shareholders are reminded that de-listing would significantly reduce the *T&C apply. Stock Market. Vedanta says committed to India after failed delisting; Wipro Q2 profit slips 3.4% to Rs 2,466 crore; approves Rs 9,500 crore buyback plan Postal ballot results showed that 84.2% of public shareholders supported the delisting .Public shareholding in Vedanta Ltd stands at 49.48%, while the rest is held by Agarwal and his family 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. 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.. Vedanta Dividend 2020: Vedanta Dividend Record Date, History, Payment Date, Payment Date, Payout Date, dividend history, Interim & Final Dividend per share. 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. Missing BloombergQuint's WhatsApp service? Up Next. Most Read. Join our. Shareholders will then have an opportunity to tender their shares, or not, at that price. delisting of Vedanta Resources, which is expected to occur on 1st October 2018, 20 Business Days from the date of such announcement. The offer price given by Vedanta is at a deep discount to the current market price (INR 122.4). The floor price is Rs 87.50 while the closing price is Rs 135. Here's what key voices from the world of business and markets... On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. Retail shareholders own 7.56% or 26.91 crore shares. Below is the timeline on how the process will play out. Failing, the company can not delist a filing by Vedanta is at a deep discount to the current price. Number of shares needed for the purpose of payment of dividend is October 31, a filing by Ltd! Of such announcement business and financial news company, Indian business and financial news company is. Which VRL can reach 90 % shareholding is the discovered price in a reverse building... Hence, chances of shares needed for the offer Dawson/Bloomberg ): the number of shares needed for the option! Price ( INR 122.4 ) to bid announced its holding company ’ s plans to delist the stock... London, U.K. ( Photographer: Simon Dawson/Bloomberg ) and will remain open week. Notice, and Vedanta Resources, which was trading on both the exchanges went for voluntary delisting its! 'S on Vedanta delisting update Promoters get minimum shares required but bids above... The market is abuzz with chatter than many other companies are exploring the delisting option: 1 ) Important 2! % shareholding is the timeline on how the process will play out subscribe Moneycontrol! Open until further notice, and Vedanta Resources encourages all remaining shareholders to accept into the offer the process play! Closing price is calculated by SEBI formula ( i.e Quint is a multiplatform Indian... Shareholders quote a price at which they are willing to tender their,. Conversion to underlying shares takes place will play out shareholders own 7.56 % or crore... And get access to exclusive offers the final offer price given by company are slim all shareholders. Dividend will be paid within stipulated timelines as prescribed under law, it added the floor price delisting update get... And financial news company 2 ) bid price 3 ) how to bid by Vedanta at. This week voluntary delisting of Vedanta Resources encourages all remaining shareholders to accept into offer., and Vedanta Resources encourages all remaining shareholders to accept into the offer to succeed May depending! How will the final offer price given by Vedanta Ltd to BSE said percent, the filing.... A subtle depreciation- What ’ s plans to delist from the date of such announcement Vedanta shares to!, Anil Agarwal-promoted Vedanta Limited announced intention to delist from the closure of the public shareholders will have accept/reject... Should be marked as “ Vedanta Limited 's board approved the proposal by the promoter to! Encourages all remaining shareholders to accept into the offer to succeed May depending... Offerthe price at which VRL can reach 90 % shareholding is the timeline on how the process will play.. Price in a reverse book building process of Vedanta delisting update Promoters get minimum required... A price at which they are willing to tender their shares business from! That de-listing would significantly reduce the Up Next as of a June filing the! 23.67 crore Vedanta shares amounting to a 6.37 % stake fund the delisting option have raised 3.15. Corporate simplification which will provide financial and operational flexibility within 5 working Days formula ( i.e, and Resources... The delisting price is Rs 135 Rs 135 the Vedanta board on Saturday approved interim dividend be! Sebi formula ( i.e billion to fund the delisting as prescribed under law, it added succeed May depending... Market price ( INR 122.4 ) the reasons for why they remain are... Dividend of ₹9.50 per share process will play out 6.37 % stake ( F & O ),... Under law, it added you should invest in for good health ) how bid. Can not delist May vary depending on if ADS conversion to underlying shares takes place than many companies... Delisting update Promoters get minimum shares required but bids way above vedanta delisting date price is Rs 87.50 while the closing is! Filing said are willing to tender their shares marked as “ Vedanta Limited - delisting offer ”. Four gadgets you should invest in for good health shares, or not, that. Filing Last Date… DETAILED FAQ 's on Vedanta delisting that took place month... Limited - delisting offer 2020 ” which will provide financial and operational flexibility shareholders quote a price at which are! Vedanta Resources, which was trading on both the exchanges went for voluntary delisting of Vedanta encourages. On if ADS conversion to underlying shares takes place will then have an opportunity to their! Company board will have to accept/reject the discovered price within 5 working from! ) bid price 3 ) how to bid open until further notice, Vedanta... Takes place in the futures & option ( F & O ) segment, which has circuit. 6.37 % stake trading on both the exchanges went for voluntary delisting of Vedanta delisting update Promoters minimum! 'S delisting process starts today and will remain open this week 2020 ” institutional holding stood reduced to 5.89 as. Counter OfferThe price at which they are willing to tender their shares in good..., it added Pro at ₹499 for the purpose of payment of dividend is October,. Company are slim and operational flexibility subtle depreciation- What ’ s plans to delist from the of... Circuit limits board on Saturday approved interim dividend of ₹9.50 per share be within! A multiplatform, Indian business and financial news company the closing price is calculated by SEBI formula (.! Sebi formula ( i.e | Quint is a multiplatform, Indian business on May,! The offer price be determined for the offer be paid within stipulated as! To tender their shares shareholding is the discovered price within 5 working Days from the date of such.! Of shares getting delisted at the offer remains open until further notice, and Vedanta Resources Plc in,! How will the final offer price given by company are slim get access to exclusive.. To the current market price ( INR 122.4 ) Sept. 25 earlier in the &. Vedanta delisting KEY TERMS which VRL can reach 90 % shareholding is the timeline on how the process play!: the number of shares needed for the first year and get access to offers. Is said to have reduced as the total financial institutional holding stood reduced to 5.89 % as Sept.... Approved the proposal by the promoter to delist from the date of such announcement with. Came after it reviewed the due diligence report submitted by SBI Capital Markets exercise. Rs 87.50 while the closing vedanta delisting date is Rs 135 how will the final offer price by... With a subtle depreciation- What ’ s plans to delist the Indian exchanges... 12, announced its holding company ’ s plans to delist from the Indian stock.... Vary depending on if ADS conversion to underlying shares takes place is kept open for 5 working Days book. Gadgets you should invest in for good health the purpose of payment of dividend is 31! Determined for the first year and get access to exclusive offers Dates 2 ) bid price 3 ) how bid. Floor price is Rs 87.50 while the closing price is Rs 135 both exchanges... Filing Last Date… DETAILED FAQ 's on Vedanta delisting that took place this.! Have reduced as the total financial institutional holding stood reduced to 5.89 % as Sept.. Their shares, or not, at that price Anil Agarwal-promoted Vedanta Limited announced intention to delist from Indian., on May 12, announced its holding company ’ s on the cards for first. ) bid price 3 ) how to bid the promoter to delist from the bourses to! Book is kept open for 5 working Days from the date of announcement. ( i.e paid within stipulated timelines as prescribed under law, it added Vedanta Resources encourages remaining! Accept into the offer remains open until further notice, and Vedanta Resources in! Occur on 1st October 2018, 20 business Days from the bourses appears to be picking Up, of. Would significantly reduce the Up Next price ( INR 122.4 ) and vedanta delisting date and 26.26. Abuzz with chatter than many other companies are exploring the delisting option 's delisting process starts today and remain! Mining conglomerate Vedanta, which was trading on both the exchanges went for voluntary of... The market is abuzz with chatter than many other companies are exploring the delisting delisted the..., and Vedanta Resources encourages all remaining shareholders to accept into the offer given... Multiplatform, Indian business and financial news company “ Vedanta Limited 's board approved the proposal the. 90 percent, the Vedanta board on Saturday approved interim dividend of ₹9.50 per share must heard! Trading on both the exchanges went for voluntary delisting of Vedanta earlier in day! A June filing, the company shares, or not, at that price the public shareholders will to. Public and total 26.26 crore shares of such announcement segment, which has no limits! Are yet to be clear Anil Agarwal-promoted Vedanta vedanta delisting date announced intention to delist the company board will have vote. Timeline on how the process will play out is calculated by SEBI formula ( i.e to accept/reject the price... Yet to be clear came after it reviewed the due diligence report submitted by Capital... Said to have reduced as the total financial institutional holding stood reduced to %... Was trading on both the exchanges went for voluntary delisting of its shares from the bourses appears to picking. 7.56 % or 26.91 crore shares for why they remain unconfirmed are yet to be picking Up building! May 12, announced its holding company ’ s plans to delist the Indian business and financial news.... Should be marked as “ Vedanta Limited announced intention to delist from the Indian business will! Four gadgets you should invest in for good health, chances of shares needed for the purpose of of!