Bloomberg | Quint is a multiplatform, Indian business and financial news company. The holding company — Vedanta Resources — … The bidding was to have closed at the end of market hours, but due to glitches earlier in the day, on account of which some shareholders reportedly faced trouble in tendering shares, the Bombay Stock Exchange extended the bidding till 7 p.m. By 7:35 p.m., the BSE website showed that only 125.47 crore shares were confirmed to be tendered and bids worth 12.31 crore shares were yet to be confirmed. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. Vedanta Ltd. ANALYST Parvati Rai, head -research@krchoksey.com, +91 22 6696 5413 Delisting: Floor price below the fair value Event highlights • On May 12, Vedanta Resources PLC, founded by metals and mining baron Anil Agarwal, announced its decision to voluntary delist its Indian company, Vedanta Ltd, from stock exchanges. 10 key things to know about Vedanta delisting; brokerages say Q1 earnings better than expected ... to the promoter up to a period of one year from the date of delisting. The record date for the purpose of payment of dividend is October 31, the filing said. How should the investors see this? PRICING AND IMPACT 1. Step 4: All the quotes are aggregated and a final price, also known as the 'discovered price' is announced on the last day of the book-building exercise. FAQS ON THE PROPOSED DELISTING OF VEDANTA LIMITED KEY TERMS ... Equity Shares to the Promoter up to a period of one year from the date of delisting and, in such case, the Promoter will accept the Equity Shares at the final exit offer price. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. The announcement comes days after the failed delisting offer of the conglomerate. ©TV18 Broadcast Limited. Vedanta says committed to India after failed delisting; Wipro Q2 profit slips 3.4% to Rs 2,466 crore; approves Rs 9,500 crore buyback plan The delisting of Anil Agarwal - led Vedanta Ltd. saw a turn in fortune in the late evening hours of Oct. 9 - the last day of the reverse book building process in which public shareholders can tenders their shares if they want to participate in the delisting. The BSE webpage displaying reverse-book building process of Vedanta earlier in the day. Here's what key voices from the world of business and markets... On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. Prince Mathews Thomas. In Pics | 10 books business leaders read in 2020. Below is the timeline on how the process will play out. As of a June filing, the Life Insurance Corporation owned 23.67 crore Vedanta shares amounting to a 6.37% stake. If they fail to reach 90% shareholding the delisting offer will have failed.Exit PriceThe price at which 90% shareholding is achieved -- whether it’s the discovered price, if accepted by the promoters, or a counter offer price -- will be deemed the exit price. Join our. ... Days after its bid for delisting failing, the Vedanta board on Saturday approved interim dividend of ₹9.50 per share. LIC, which held 6.37 per cent in Vedanta, submitted all its shares at a price of Rs 320, a 267 per cent premium over the floor price of Rs 87.25, upsetting Vedanta… Delisting of Vedanta Shares . Billionaire Anil Agarwal-controlled Vedanta on Tuesday said it has received in-principle approval from stock exchanges -- BSE and National Stock Exchange of India (NSE) -- for its delisting … Main reasons for delisting are – corporate simplification which will provide financial and operational flexibility. The record date for the purpose of payment of dividend is October 31, a filing by Vedanta Ltd to BSE said. THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION This Letter of Offer ("Letter of Offer"/ "LOF") is being sent to you as a Public Shareholder (defined below) of Vedanta Limited as on the Specified Date (defined below) in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, as amended ("Delisting … Missing BloombergQuint's WhatsApp service? Shareholders quote a price at which they are willing to tender their shares. Step 2:  Post shareholder approval, the company will file for reverse book building process with the stock exchanges (Stock exchange approvals typically takes 2-3 weeks), Step 3: Once the approvals are in place, the reverse book building exercise starts on the stock exchange platform. Vedanta, which was trading on both the exchanges went for voluntary delisting of its shares from the share market. Anil Agarwal-led Vedanta Resources on Saturday said it had failed to receive the required number of shares to delist Vedanta Limited. VRL seeks to also delist the ADS. Retail shareholders own 7.56% or 26.91 crore shares. *Delisting floor price is calculated by SEBI formula ( i.e. It's not yet known if SEBI will grant that extension and if it will be adequate for the delisting process to achieve the 90% threshold. Important Dates . Vedanta Shareholders are reminded that de-listing would significantly reduce the All rights reserved. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. Assuming that shareholders and the company board agree on the discovered price, the delisting process will take a minimum of 8-10 weeks from the date of announcement of the shareholder meeting to approve the delisting proposal. On October 10, Vedanta Ltd announced that its voluntary delisting offer, to acquire the balance shareholding in Mumbai-listed Vedanta Ltd and then delisting it … Shareholders were waiting for the dividend announcement from Vedanta after the company's delisting … The envelope should be marked as “Vedanta Limited - Delisting Offer 2020”. Most Read. How will the final offer price be determined for the Delisting? Anil Agarwal, billionaire and chairman of Vedanta Resources Plc in London, U.K. (Photographer: Simon Dawson/Bloomberg). *T&C apply. Vedanta delisting update Promoters get minimum shares required but bids way above floor price. Earlier this month, Anil Agarwal-promoted Vedanta Limited announced intention to delist from the Indian stock exchanges. The Seller Member/Public Shareholder should ensure to deliver the documents as mentioned above along with the TRS either by registered post or courier or hand delivery to the Registrar to the offer within 2 days of the Bid Closing Date by the Seller Member. On the 18th of May, the Board of Directors of Vedanta Ltd held a meeting to decide whether Vedanta Ltd should be delisted or not. Counter OfferThe price at which VRL can reach 90% shareholding is the discovered price in a reverse book building process. Participation is open to all public shareholders irrespective of whether they participated in the reverse book building process.If, via the counter offer, the promoters are able to reach 90% shareholding, then the delisting will have completed the second, most critical phase. The interim dividend will be paid within stipulated timelines as prescribed under law, it added. Vedanta’s decision to delist follows Vedanta Resources, one of the promoter group firms, making an indicative offer of Rs 87.50 to buy out all the public shareholders in the company. The offer price given by Vedanta is at a deep discount to the current market price (INR 122.4). Shares of Vedanta tanked 10 per cent to Rs 109.90 on the BSE in the early morning trade on Monday, after the company announced the failure of delisting offer as the promoters failed to garner the required number of shares.. 90% ThresholdIf the reverse book building process is not extended, then as per the last available data Vedanta Resources Ltd., the parent company making the delisting offer, will have insufficient shares to cross the 90% shareholding threshold and the delisting will have failed. The floor price is Rs 87.50 while the closing price is Rs 135. Limited period offer. May 13, 2020 / 03:20 PM IST . Zee Business Managing Editor Anil Singhvi tells investors about the fair price of the share here Get more India News and Business News on Zee Business. Vedanta closed at ₹123.60 on the BSE on Wednesday, a loss of 10.40 per cent over the previous day’s close. Bid Opening Date: October 05, 2020 Bid Closing Date: October 09, 2020 A counter offer price is lower than the discovered price but not less than the book value of the company.The last date for announcement of a counter offer is Oct. 13. Note: The number of shares needed for the offer to succeed may vary depending on if ADS conversion to underlying shares takes place. The last date to announce this price, and the acceptance level, is Oct. 16.The promoters are required to purchase all shares offered at this price. vol weighted average price 60 days prior to the date of intimation) Tags delisting Vedanta Subscribe to Moneycontrol Pro at ₹499 for the first year and get access to exclusive offers. American Depositary Share holders include promoter and public and total 26.26 crore shares. Shareholders will then have an opportunity to tender their shares, or not, at that price. The shares of Vedanta Resources fell nearly a percent and a half on Tuesday morning (May 19) after the Board of Directors approved the delisting of the stock at ₹87.5 a piece. Step 1: Vedanta Limited will seek shareholders’ approval for the delisting proposal by way of a special resolution through postal ballot and e-voting (This can typically take 4-5 weeks). Up Next. For the resolution to be approved, two-thirds of the public shareholders will have to vote in favor of delisting. Use Code: PRO2021. As set out in the Offer Document, now that the Offer has become unconditional in all ... October 2018 being 20 Business Days from the date of this announcement. Hence, chances of shares getting delisted at the offer price given by company are slim. Stock Market Live: Sensex trades higher, Nifty above 14,000; financials, IT stocks lead; Small, midcaps outperform, Wall St advances, dollar declines as remarkable year nears finish line, Yearender 2020: A historic oil price collapse, with worries headed into 2021. You must have heard of Vedanta delisting that took place this month. The promoters have raised $3.15 billion to fund the delisting. Record date for the same is 31 October. NEW DELHI: Vedanta Ltd, the metals to mining conglomerate, may find it tough to survive if its corporate restructuring exercise fails as the group is faced with burgeoning debt on one hand and falling revenues on the other, analysts said. That is said to have reduced as the total financial institutional holding stood reduced to 5.89% as on Sept. 25. Subscribe to Moneycontrol Pro at ₹499 for the first year and get access to exclusive offers. of fully paid up equity shares (excl ADS): 356,10,08,83590% of that: 320,49,07951Promoters have: 186,36,18,788They need additional: 134,12,89163Total shares with public: 169,73,90,047, THE PRICEFloor price/Indicative offer price: Rs 87.25/shareDiscovered price: Yet to be announcedCounter offer price: If promoters choose to make oneExit price: Price at which 90% shareholding is achieved, Delisting offer size (at discovered price): 134,12,89163 shares x Discovered price. Read more here. The Offer remains open until further notice, and Vedanta Resources encourages all remaining shareholders to accept into the Offer. The delisting of Anil Agarwal - led Vedanta Ltd. saw a turn in fortune in the late evening hours of Oct. 9 - the last day of the reverse book building process in which public shareholders can tenders their shares if they want to participate in the delisting. Vedanta is the third company to make unsuccessful delisting efforts in the last two years after INEOS Styrolution and Linde India. Till 09:23 am, a combined 2.4 million equity shares had changed hands on the NSE and … After his buy out of Cairn, Vedanta set in motion the process of delisting the cash-rich Cairn India in 2016 and merge it fully with self. Step 7: For the delisting process to be successful, the promoter's stake in the company will have to go up to 90 percent. Stock Market. If the promoter fails to increase his stake to 90 percent, the company cannot delist. If an extension is given, at the end of which atleast 134.12 crore shares are tendered in confirmed bids, then VRL will have succeeded in the first phase of the process. Let's talk about: 1) Important Dates 2) Bid Price 3) How to bid. The book is kept open for 5 working days. 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