InvestorQ : When is Vedanta planning to go ahead with its delisting plan and the buyback of shares from outside shareholders?
diksha shah made post

When is Vedanta planning to go ahead with its delisting plan and the buyback of shares from outside shareholders?

Answer
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Arti Chavan answered.
1 month ago


Vedanta is shortly expecting the approval for its delisting buyback offer from SEBI. In fact, Vedanta has already raised an amount of $3.15 billion to fund the delisting of Vedanta India and the deal is sponsored by the promoters, Vedanta Holdings UK.

Vedanta is now seeking the approval of SEBI to start the reverse book building process. The reverse book building will stay open for a period of 5 days and during his period the shareholders will bid to discover the price for delisting, based on which it will be set.

Under the SEBI regulations, a delisting can only be undertaken if 90% of the votes of outside shareholders are in favour of it and surrender the shares of delisting. The final price agreed upon will be the price at which 90% of the delisting quantum can be bought back.

Vedanta’s public shareholding stands at 183.98 shares representing nearly 49.49% of the outstanding share capital of Vedanta Resources Ltd. In May 2020, it may be recollected that Vedanta had announced delisting price of Rs.87.50 but the stock has rallied sharply since.

Now, Vedanta has confirmed that it has approximately $3.15 billion in its kitty, and that is how much it can afford to spend at this point of time for the delisting exercise. It has already stretched itself to the hilt on the resources raising front.

As per the kitty available currently, Vedanta can pay a maximum price of Rs.128 per share for this stake, which is the kind of premium investors were expecting. In a best case scenario, Vedanta is apparently willing to offer is Rs.125, which is 40% premium to the original price.