How will the final offer price be determined for the Delisting? Bid Opening Date: October 05, 2020 Bid Closing Date: October 09, 2020 Anil Agarwal, billionaire and chairman of Vedanta Resources Plc in London, U.K. (Photographer: Simon Dawson/Bloomberg). The envelope should be marked as “Vedanta Limited - Delisting Offer 2020”. The trend of companies looking to delist from the bourses appears to be picking up. Delisting is the word for this phenomenon. All rights reserved. SHARES NEEDEDNo. Delisting of Vedanta Shares . 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. 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. 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. Missing BloombergQuint's WhatsApp service? Advertisement . May 13, 2020 / 03:20 PM IST . The interim dividend will be paid within stipulated timelines as prescribed under law, it added. 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. Vedanta Dividend 2020: Vedanta Dividend Record Date, History, Payment Date, Payment Date, Payout Date, dividend history, Interim & Final Dividend per share. 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. VRL seeks to also delist the ADS. Main reasons for delisting are – corporate simplification which will provide financial and operational flexibility. Four gadgets you should invest in for good health. 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). Let's talk about: 1) Important Dates 2) Bid Price 3) How to bid. Vedanta, which was trading on both the exchanges went for voluntary delisting of its shares from the share market. Metals and mining conglomerate Vedanta, on May 12, announced its holding company’s plans to delist the Indian business. 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. Note: The number of shares needed for the offer to succeed may vary depending on if ADS conversion to underlying shares takes place. 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. 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 … 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. ... Days after its bid for delisting failing, the Vedanta board on Saturday approved interim dividend of ₹9.50 per share. 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. You must have heard of Vedanta delisting that took place this month. 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. The offer price given by Vedanta is at a deep discount to the current market price (INR 122.4). The announcement comes days after the failed delisting offer of the conglomerate. Vedanta is the third company to make unsuccessful delisting efforts in the last two years after INEOS Styrolution and Linde India. *T&C apply. 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. The board of directors of Vedanta Ltd. on Monday approved a proposal to delist the company. 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. 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. Vedanta Limited's delisting process starts today and will remain open this week. 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 Ltd. ANALYST Parvati Rai, head -firstname.lastname@example.org, +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. 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. 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. How should the investors see this? 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. 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 Step 7: For the delisting process to be successful, the promoter's stake in the company will have to go up to 90 percent. The Offer remains open until further notice, and Vedanta Resources encourages all remaining shareholders to accept into the Offer. 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. Stock Market. Till 09:23 am, a combined 2.4 million equity shares had changed hands on the NSE and … 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. 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). For the resolution to be approved, two-thirds of the public shareholders will have to vote in favor of delisting. Below is the timeline on how the process will play out. Anil Agarwal-led Vedanta Resources on Saturday said it had failed to receive the required number of shares to delist Vedanta Limited. 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 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. Join our. 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 The stock trades in the futures & option (F&O) segment, which has no circuit limits. On May 18, Vedanta Limited's board approved the proposal by the promoter to delist the company. Shareholders will then have an opportunity to tender their shares, or not, at that price. 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. 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..