InvestorQ : Vedanta stock is getting delisted then why mutual funds are investing?
nishi Shah made post

Vedanta stock is getting delisted then why mutual funds are investing?

Answer
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Ayushi Kampani answered.
3 months ago


I don’t think we can confirm that mutual funds are buying the stock. Mutual funds disclose their portfolio transactions only at the end of every month. There have been various indications that shareholders were not happy with the delisting price of Vedanta. Though Vedanta did get shareholder approval to go ahead with the listing, the process is unlikely to be as straightforward as it seems. After the shareholder approval, the company will file for a reverse book building process with the stock exchanges.

The price discovered in the process has to be accepted by the acquirer or announce a counteroffer, which will be higher than the price offered initially. In a nutshell, bridging the gap between shareholder expectations and the company's offer price and reaching a consensus may be a difficult task. So, the significant interest we are witnessing in Vedanta post-approval for delisting may be arbitragers waiting to profit from the potential price differential!