InvestorQ : vedanta company proposed to delisting of equity shares. Should I continue as share holder by not ofloading shares to company as per their scheme. whether to continue as shareholder it will apprciate in future.
Jagdamba Prasad Chaurasia made post

vedanta company proposed to delisting of equity shares. Should I continue as share holder by not ofloading shares to company as per their scheme. whether to continue as shareholder it will apprciate in future.

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Neelam Naik answered.
1 year ago
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Vedanta is a diversified conglomerate with a wide commodity mix covering iron ore, zinc, copper, aluminum, coal, power, oil & gas, and others. The company should benefit from the upturn in the global commodity cycle. The past experience has been that shareholders can always get a better price if they wait longer and institutional investors apply more pressure on the company to hike the price.

The price was set at Rs.87.50 and there has been a call for a significantly higher price considering that the company is sitting on cash stash of nearly Rs.35,000 crore and the market cap is just Rs.33,000 crore. When a similar delisting exercise was done for Vedanta Resources PLC on the London Stock Exchange, the price was set at 27% premium to the closing price.

There is no reason why the Indian shareholders off Vedanta Ltd should settle for such a low price especially when the company is sitting on a cash pile.

If you already hold the shares, I would say it won't be a good idea to offload at this point since the markets are going through low trends

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