InvestorQ : Why is Vedanta proposed to be delisted and what should shareholders do?
Aashna Tripathi made post

Why is Vedanta proposed to be delisted and what should shareholders do?

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Tisha Malhotra answered.
8 months ago
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Anil Agarwal announced a proposal to buy out minority, non-promoter shareholders of his Indian unit Vedanta Ltd with a view to delist it from the domestic stock exchanges. In 2018 Agarwal had successfully delisted Vedanta Resources PLC from London Stock Exchange. As per SEBI regulations, the delisting is successful if the shareholding of the acquirer and the shares offered by the public together make up 90% of the company’s entire share capital. One reason given for the delisting decision is corporate simplification. It is also an opportune time for the promoter group to lap up shares. The share price has halved from its 52-week high and is down 83% from the highs of December 2017. The delisting of Vedanta Ltd will provide enhanced operational and financial flexibility in a capital intensive business. It will also save them from constant scrutiny regulators.

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