InvestorQ : Where is the Vedanta delisting offer stuck now and do you see Anil Agarwal being able to delist Vedanta from the Indian stock exchanges?
Priyanka N made post

Where is the Vedanta delisting offer stuck now and do you see Anil Agarwal being able to delist Vedanta from the Indian stock exchanges?

Answer
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Neelam Naik answered.
2 weeks ago


Even as the last day of the delisting buyback offer ended for Vedanta and the company called it a success, there was a lot of confusion about the eventual fate of India’s biggest delisting offer. There was no confirmation from the exchanges still.

Anil Agarwal of Vedanta needed to be able to buyback a total of at least 134.1 crore shares for his delisting to be successful. While Vedanta claimed to have received 137 crore shares, the demand schedule released by the BSE only showed 125.47 crore shares, leaving a gap fo 12 crore shares.

The problem for Vedanta arose after its biggest minority shareholder, LIC, hiked the cost of the delisting considerably to around Rs.320, as against the stated floor price of Rs.87.50. LIC holds 6.37% stake in Vedanta and this offer needs LIC’s support to go ahead. Most of the bids were in the Rs 150-160 range.

Anil Agarwal has stated that he may make a counter offer if warranted. If one looks at the amount of funding arranged for the stake, it looks like Anil Agarwal may be willing for a price in the range of Rs.140-150. Anything above that may be tough and Rs.320 was ruled out.

If you exclude the ADRs, there are a total of 137.4 crore shares available to be bought back and that would imply that based on the current funds status, Vedanta can pay a best case price of Rs.169 per share. The next few days may be interesting in this story.