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. ... Days after its bid for delisting failing, the Vedanta board on Saturday approved interim dividend of ₹9.50 per share. Limited period offer. As of a June filing, the Life Insurance Corporation owned 23.67 crore Vedanta shares amounting to a 6.37% stake. Vedanta Dividend 2020: Vedanta Dividend Record Date, History, Payment Date, Payment Date, Payout Date, dividend history, Interim & Final Dividend per share. Prince Mathews Thomas. *T&C apply. Vedanta, which was trading on both the exchanges went for voluntary delisting of its shares from the share market. 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. 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. Vedanta is the third company to make unsuccessful delisting efforts in the last two years after INEOS Styrolution and Linde India. VRL seeks to also delist the ADS. 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. Stock Market. Let's talk about: 1) Important Dates 2) Bid Price 3) How to bid. 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 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. Counter OfferThe price at which VRL can reach 90% shareholding is the discovered price in a reverse book building process. PRICING AND IMPACT 1. Vedanta delisting: Anil Agarwal's latest move raises a few questions On May 12, Vedanta said it plans to de-list from Indian stock exchanges. As per guidelines, It is mandatory for VEDANTA promoters to hold at least 90% stake to delist and public shareholding in Vedanta is currently at 49.49% or 183.98 crore shares. 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. At about 3:30 p.m. the metals major looked set to receive more than the 134.12 crore shares it needed for its promoter to cross the 90% threshold required for a successful delisting. 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. All rights reserved. Wrapping 2020 with a subtle depreciation- What’s on the cards for the Rupee in 2021. 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 … Postal ballot results showed that 84.2% of public shareholders supported the delisting .Public shareholding in Vedanta Ltd stands at 49.48%, while the rest is held by Agarwal and his family 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. Sept 6: If the discovered price is not acceptable to the board/acquirer, it can announce a counter offer, which will be higher than the price offered initially. Earlier this month, Anil Agarwal-promoted Vedanta Limited announced intention to delist from the Indian stock exchanges. The book is kept open for 5 working days. ... Extension of ITR Filing Last Date… In Pics | 10 books business leaders read in 2020. How should the investors see this? The stock trades in the futures & option (F&O) segment, which has no circuit limits. Step 5: The company board will have to accept/reject the discovered price within 5 working days from the closure of the book-building exercise. 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. 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). In normal circumstances, if the shareholders and the Board of Directors agreed on the discovered price, the delisting process would take a minimum of 8-10 weeks (from the date of announcement of shareholder approval). Bloomberg | Quint is a multiplatform, Indian business and financial news company. 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 … 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… The record date for the purpose of payment of dividend is October 31, the filing said. 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. If the promoter fails to increase his stake to 90 percent, the company cannot delist. The market is abuzz with chatter than many other companies are exploring the delisting option. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. 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. delisting of Vedanta Resources, which is expected to occur on 1st October 2018, 20 Business Days from the date of such announcement. Note: The number of shares needed for the offer to succeed may vary depending on if ADS conversion to underlying shares takes place. Main reasons for delisting are – corporate simplification which will provide financial and operational flexibility. The announcement comes days after the failed delisting offer of the conglomerate. The floor price is Rs 87.50 while the closing price is Rs 135. Bid Opening Date: October 05, 2020 Bid Closing Date: October 09, 2020 Public Shareholders: Holders of Equity Shares, other than the following: promoters, promoter group and persons acting in concert with them; and; holders of depository receipts issued overseas against Equity Shares held with a custodian (i.e., the American Depository Shares issued by the Company ("ADS")) and such custodian holding the Equity … SHARES NEEDEDNo. The envelope should be marked as “Vedanta Limited - Delisting Offer 2020”. Read more here. The record date for the purpose of payment of dividend is October 31, a filing by Vedanta Ltd to BSE said. DETAILED FAQ's ON VEDANTA DELISTING KEY TERMS. Use Code: PRO2021. Hence, chances of shares getting delisted at the offer price given by company are slim. *Delisting floor price is calculated by SEBI formula ( i.e. For the resolution to be approved, two-thirds of the public shareholders will have to vote in favor of delisting. 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. 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. Vedanta closed at ₹123.60 on the BSE on Wednesday, a loss of 10.40 per cent over the previous day’s close. Shareholders quote a price at which they are willing to tender their shares. Missing BloombergQuint's WhatsApp service? Most Read. You must have heard of Vedanta delisting that took place this month. Till 09:23 am, a combined 2.4 million equity shares had changed hands on the NSE and … Vedanta Limited's delisting process starts today and will remain open this week. The board of directors of Vedanta Ltd. on Monday approved a proposal to delist the company. 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. 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. Shareholders were waiting for the dividend announcement from Vedanta after the company's delisting … Metals and mining conglomerate Vedanta, on May 12, announced its holding company’s plans to delist the Indian business. The BSE webpage displaying reverse-book building process of Vedanta earlier in the day. Delisting is the word for this phenomenon. The nod came after it reviewed the due diligence report submitted by SBI Capital Markets. The holding company — Vedanta Resources — … 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. Subscribe to Moneycontrol Pro at ₹499 for the first year and get access to exclusive offers. 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. 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 … 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. ©TV18 Broadcast Limited. Bankers to the delisting offer have requested securities regulator SEBI for a one-day extension, on grounds that glitches in the exchange tendering webpage hurt participation, according to one official close to the process who didn't want to be named. The success of the delisting offer, the first phase, hinges on participation of institutional shareholders such as foreign portfolio investors with 65.90 crore shares (18.51%), mutual funds with 31.63 crore shares (8.88%) and LIC. Below is the timeline on how the process will play out. 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. Remember, this is basically an approval for the delisting proposal, and has nothing to do with the price offered by the promoter group. Vedanta delisting update Promoters get minimum shares required but bids way above floor price. Up Next. The offer price given by Vedanta is at a deep discount to the current market price (INR 122.4). At that time, public shareholders had tendered 137.1 crore of the total 169.73 crore shares held by them, though some bids were pending confirmation from custodians. May 13, 2020 / 03:20 PM IST . How will the final offer price be determined for the Delisting? Delisting of Vedanta Shares . The promoters have raised $3.15 billion to fund the delisting. 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. 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. 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. Join our. 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. Four gadgets you should invest in for good health. Oct. 10 Update: Vedanta delisting offer fails. 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. Vedanta Shareholders are reminded that de-listing would significantly reduce the Anil Agarwal-led Vedanta Resources on Saturday said it had failed to receive the required number of shares to delist Vedanta Limited. Advertisement . 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. Anil Agarwal, billionaire and chairman of Vedanta Resources Plc in London, U.K. (Photographer: Simon Dawson/Bloomberg). The trend of companies looking to delist from the bourses appears to be picking up. 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. That is said to have reduced as the total financial institutional holding stood reduced to 5.89% as on Sept. 25. The interim dividend will be paid within stipulated timelines as prescribed under law, it added. Step 7: For the delisting process to be successful, the promoter's stake in the company will have to go up to 90 percent. 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.. The reasons for why they remain unconfirmed are yet to be clear. New Delhi: The reverse book building exercise to delist Vedanta Ltd's shares from the BSE and National Stock Exchange saw over 17.15 crore shares being tendered till Wednesday, according to stock exchange data. 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