in

Vedanta delisting update: Promoters get minimum shares required, but bids way above floor price


A counter offer from the promoters of Vedanta Limited needs to come within two days which can be further accepted or rejected by shareholders.

On the final day of the reverse book building process, Anil Agarwal’s Vedanta Group received bids for  137.46 crores shares at various prices as the mining major looked to go off the bourses. The promoters needed public shareholders to tender around 134 crore shares for the success of the delisting process. However, the majority of the shares were tendered between the price range of Rs 140-150 per share, Yash Gupta, Equity Research Associate, Angel Broking told Financial Express Online. This is higher than the floor price of Rs 87.25 per share that Vedanta has set. Shares of the mining major ended Friday’s trading session at Rs 122 apiece, surging over 3%.

The reverse book building process ended today. Data showed that stocks have been offered at a price ranging from anywhere between Rs 87.25 per share to Rs 999 per share. However, a large quantity of shares have been offered between the range of Rs 140-150 per share Excluding ADRs, the promoter group holds 52.33% of the total issued paid-up capital of the company while the public shareholders hold 47.67%.

“We expect that the discovered price may end up being much higher than the floor price and there could be a possibility of the promoters coming out with a counter offer,” said Yash Gupta, Equity Research Associate, Angel Broking. Vedanta Limited’s promoters need to raise their shareholding to 90% for the successful delisting. Gupta added that a counter offer from the promoters of Vedanta Limited needs to come within two days which can be further accepted or rejected by shareholders.

In case the delisting process goes through, on October 16, the discovered price or the exit price will be announced and whether the acquirers of the shares accept the same. In case of acceptance of the offer, on October 23, the company will proceed to pay the public shareholders. However, market participants believe that the delisting might not go through as LIC, which holds 6.37% stake in the company, might not tender shares below Rs 200 per share.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.





Source link

What do you think?

Avatar

Written by Timesdel

Leave a Reply

Your email address will not be published. Required fields are marked *

Pixar’s Soul bypasses theaters, will stream on Christmas

Sensex, Nifty post best winning streak in almost a year, add 4.4% this week; key things from today’s trade